When using a market penetration strategy, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price. This is due to

Experience curve effects. Although it is not always the case, many firms expect the unit cost to drop significantly as the accumulated volume sold increases, an effect known as the experience curve effect. With this effect, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price. More test answers on https://studyhippo.com/marketing-practice-quiz-questions-test-3/

The first step of the strategic planning process is to identify the company’s ________, an explicit statement that clearly explains the organization’s purpose and what it seeks to accomplish. A. mission B. business portfolio C. market penetration strategy D. positioning E. target market

A. mission More test answers on https://studyhippo.com/chapter-2-study/

14. A market penetration strategy entails the creation of new products for current customers.

ANS: F This is an example of product development strategy. A market penetration strategy in one that tries to increase market share among existing customers. More test answers on https://studyhippo.com/mkt-c2/

12. Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a market penetration strategy.

ANS: F Berkshire Hathaway uses a diversification strategy. More test answers on https://studyhippo.com/mkt-c2/

T or F: Berskshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a market penetration strategy.

False More test answers on https://studyhippo.com/mkt-301-final-truefalse/

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Market Penetration Strategy Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Market Penetration Strategy and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Market Penetration Strategy and get quick solutions for your test.

What is Market Penetration Strategy?

Market penetration is a strategy used by businesses to increase their sales and revenue in an existing market. By utilizing market penetration, businesses can increase their competitive advantage and better position themselves for long-term growth. Generally, the goal of this strategy is to gain more market share by selling more products or services within a specific geographic area or industry segment.First, businesses should take an inventory of their current customer base and identify any untapped market opportunities that may exist within these customers. This can be done through the use of surveys, focus groups or other research techniques. Once potential markets are identified, companies should develop strategies to target these markets in order to maximize sales potential and gain a larger share of the overall marketplace. This may include utilizing different pricing models, product lines or promotional campaigns tailored specifically toward those markets.The next step in implementing a successful market penetration strategy is to develop an effective marketing plan which clearly identifies how the company plans on reaching out to potential customers and communicating its message effectively across multiple channels such as television ads, email campaigns, social media campaigns and more. Additionally, companies should be sure that they have an effective customer service system in place as well as consistent follow-up efforts with existing customers so that they feel valued and stay loyal to the brand for years to come. Finally, it’s important for companies engaging in market penetration strategies to track progress with regard to sales figures over time so that any changes made can be easily monitored and evaluated for effectiveness on an ongoing basis. Doing this will help ensure that any investments made into new markets are paying off while also providing valuable insights into which areas still need improvement before further expansion takes place. By taking this data-driven approach when developing its strategies, businesses can ensure they are making smart decisions throughout their journey towards achieving sustainable growth within their respective markets.