e. market saturation Answer: d
Page(s): 37-38
LO: 4
AACSB: Analytic
QD: Hard
Rationale: Ben & Jerry’s currently does not do business in Brazil. Market development is a marketing strategy to sell current products to new markets. See Figure 2-5 in the textbook.
2-214 PRODUCT DEVELOPMENT
KNOWLEDGE
The marketing strategy of selling new products to current markets is referred to as __________. a. product penetration product development market development diversification market penetration Answer: b Page(s): 37-38 LO: 4 AACSB: Analytic QD: Easy Rationale: Text term definition—product development. See Figure 2-5 in the textbook.
2-215 PRODUCT DEVELOPMENT
KNOWLEDGE
Product development refers to the marketing strategy of increasing sales of current products in current markets. selling current products to new markets. selling new products to new markets. selling new products to current markets. selling the same brands in both current and new markets. Answer: d Page(s): 37-38 LO: 4 AACSB: Analytic QD: Easy Rationale: Text term definition—product development. See Figure 2-5 in the textbook.
2-216 PRODUCT DEVELOPMENT
APPLICATIO N
If Ben & Jerry’s sold a line of new “Occupy Ben & Jerry’s” T-shirts targeted to college students in the U.S., it would be using a __________ strategy. a. product development market development market penetration diversification market saturation Answer: a
Page(s): 37-38
LO: 4
AACSB: Analytic
QD: Hard
Rationale: Ben & Jerry’s currently does not sell clothing. Product development is a marketing strategy to increase sales of new products (“Occupy Ben & Jerry’s” T-shirts) in current markets (U.S. college students). NOTE: Ben & Jerry’s supports the “Occupy” movement as it seeks to, in nonviolent fashion, engage in social change as part of its social mission. See http://www.benjerrys.com/activism/occupy-movement for more information. - 78 -