When a firm decides to double their marketing budget for a product that sells consistently, they are using which strategy:
A)diversification and market penetration
B)market development and diversification
C)market development and market penetration
D)market penetration and product development

Question

Quizplus · Accepted Answer

Market development involves increasing sales by entering new markets, while market penetration involves increasing sales in existing markets. If the firm is already selling consistently in their current market, then choosing to double the marketing budget would be a strategy to increase sales through market development in new markets while also utilizing market penetration to increase sales in existing markets. Therefore, the best choice is C, market development and market penetration.

When a Firm Decides to Double Their Marketing Budget for a Product