UNIT 8 ANSOFF MATRIX - market penetration

Question 1

Market Pentration involves
3 MARKS

Answer 1

developing strategies

to boost sales of

existing products in existing marekts

Question 2

through market penetration the bs is aiming to boost

Answer 2

market share

Question 3

Give 2 EXAMPLES of how a bs might sell more through mkt penetration

Answer 3

invest more in promotional activity

change its pricing approach

Question 4

how much risk does mkt pentration involve in terms of decision makign

Answer 4

relativley little risk

Question 5

Why does mkt penetration involve relativley little risk in terms of descision making

Answer 5

products and markets are familair to managers - so little to no marekt research or r&d is needed

Essentially we’ve saved cost

Question 6

Give scenario when bs wouldnt want to focus solely on market penetration as a strategy

Answer 6

existing Mkt has little growth potential E.G as its mature in PLC , saturated , lots of comp

mkt is saturated , lots of comp , not much chance for growth , in PLC maybe in maturity stage

Question 7

market penetration may not be rewarding in terms of

Answer 7

profits

Question 8

what may mkt pen involve to increase more sales

Answer 8

more marketing activity- can be costly and maybe not worth it in terms of profit/roi?

Question 9

mkt penetration will only work if

Answer 9

demand is there

Question 10

mkt penetration can be limiting if a business is trying to

Answer 10

grow and increase
profit,