Supply Chain Management

Category - Market Segments

Through segmentation, ____________is achieved, which allows companies to increase their percentage of sales in existing markets by taking sales from competitors.
  1. Product positioning
  2. Product segmentation
  3. Targeting
  4. Market penetration
Explanation
Answer: D - Through segmentation, market penetration is achieved, which allows companies to increase their percentage of sales in existing markets by taking sales from competitors. This can be achieved by an aggressive and well-targeted promotional campaign. For example, a soft drinks manufacturer may seek to extend sales of diet drinks through combined advertising and sales promotional drive.
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