Understanding the Market — Entrepreneurship STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipUnderstanding the Market5 Marks
Question
Explain the various forms which a profit market expansion can assume.
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Answer
A profit market expansion can assume the following forms:
Penetration Strategies: This is a strategy to grow by encouraging existing customers to buy more of the firm's existing product. Here, the enterprise try and attempt to increase the sale of the current products in the current markets by following approaches:
Encourage frequency of use of the product.
Attract new clientele using sales promotion techniques like Advertising, Personal selling, Discounts, Coupons, etc.
Attract Competitors Customers by using persuasive techniques.
Market Development Strategy: It involves selling the firm's existing products to new groups of customers and exploring new markets for the existing product at all levels national and international. The new groups of customers can be searched in terms of new Demographic Market, New Product use, New Geographical Market.
Product Development Strategies: It includes developing or modifying the existing product to meet the requirement of the customers. Developing and selling new products to people who are already purchasing the firm's existing products, i.e., management can consider new product possibilities in the same existing markets by Adding new features, Different Quality Levies and Alternative Technology.
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