FencePro, a local company, has developed an entirely new mounting system for chain link fences. After acquiring a distributor, FencePro now has the ability to market its products nationwide. FencePro is most likely following a ________ strategy.
A) market penetration
B) market development
C) downsizing
D) product adaptation
E) product development

Question

Quizplus · Accepted Answer

Market development involves expanding into new markets with existing products. In this scenario, FencePro has developed a new mounting system for chain link fences and has acquired a distributor, which gives them the ability to market their products nationwide. This indicates that they are expanding into new markets with their existing product. Therefore, FencePro is most likely following a market development strategy. FencePro has developed a new mounting system for chain link fences, and after acquiring a distributor, it now has the ability to market its products nationwide. This indicates that FencePro is expanding its market reach, which is characteristic of a market development strategy. Market development involves expanding a company's market reach by introducing existing products or services into new markets. In this case, FencePro is introducing its existing chain link fence mounting system into new markets through nationwide distribution. Market penetration involves increasing market share in existing markets, downsizing involves reducing operations, and product adaptation and development involve modifying or creating new products, respectively. FencePro's acquisition of a distributor and ability to market its products nationwide indicates that the company is pursuing a market development strategy. Market development involves introducing existing products into new markets, and in this case, FencePro is expanding its market beyond its local area to a national level. The new mounting system for chain link fences is an existing product, and the company is looking to grow by reaching new customers in new geographic regions.

FencePro, a Local Company, Has Developed an Entirely New Mounting