In: Accounting
When we set a primary goal of market penetration, we employ all the following techniques EXCEPT?
Discouraging competition entry
Earning Return on Investment Quickly
Penetrating the Market
Lowering the Unit Price
Correct answer is "Earning Return on Investment quickly".
When we set a primary goal of market penetration, we employ all the following techniques EXCEPT?
"Earning Return on Investment Quickly"
In the new product or market, return on investment cannot be earned quickly, firstly company has to gain the market share by lowering its price and cost and after that it achieves breakeven point then after profit comes.
Explanation: Market penetration strategy is the strategy to tap a new segment or to enter into a new market with a new product for gaining higher market share. These are the market penetration strategies: