Many people enjoy cereal at breakfast.In terms of "profit enhancement options" alternatives,cereal manufacturers who promote cereal as a great late-night snack to this group would be using a _____ strategy.

Question

Quizplus · Accepted Answer

Market penetration involves increasing sales of existing products in existing markets. By promoting cereal as a late-night snack, the cereal manufacturers are targeting an existing market (people who enjoy cereal for breakfast) with an existing product (cereal), thus increasing sales and enhancing profits through market penetration. Product development, differentiation, and diversification involve creating new products or entering new markets, which is not the case for promoting cereal as a late-night snack.

Many People Enjoy Cereal at Breakfast