Increasing sales of present products by selling them to new markets.
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What is product development?
Selling a new product to present markets
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What does market penetration involve?
Increasing sales of present products to present markets
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Why may a business look to enter new markets?
Where there is fierce competition in present ones
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What does related diversification refer to?
Staying in the same industry, e.g a confectioner producing a different types of chocolate bar
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What does unrelated diversification involve?
Where a business enters a completely different industry.
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The ore unrelated the diversification, the greater of which two factors?
Cost and risk
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Three examples of product development
1.Introducing a new size. 2.Making the product longer-lasting. 3.Changing the material/ingredients/colour
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How may a business partake in market penetration? 2 factors
1. Increasing quantity purchased by existing customers or Attracting users of competitor's brands
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In which two ways could a business engage in market development?
1.Targetting new segments of different age groups, social and economic class in present geographical markets. 2. Targetting new geographical markets, nationally or internationally
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