Which of the following scenarios best describes the marketing growth strategy known as market penetration in a competitive market?

• A. A firm introduces a new product line to attract a different segment of customers.
• B. A firm acquires a competitor to increase its market share.
• C. A firm increases its sales of existing products to current customers by offering discounts.
• D. A firm expands its operations into a new geographic region.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of market penetration. Market penetration is a growth strategy where a firm focuses on increasing sales of its existing products within its current market segments, without changing the product or targeting new customers.
2. Step 2: Identify key characteristics of market penetration: it involves selling more of the same product to the same customer base, often through tactics like discounts, promotions, or improved distribution.
3. Step 3: Analyze each scenario: introducing a new product line targets new customer segments (not market penetration), acquiring a competitor is a market consolidation strategy, and expanding into new geographic regions is market development.
4. Step 4: Recognize that the scenario where a firm increases sales of existing products to current customers by offering discounts aligns perfectly with market penetration, as it aims to boost sales within the existing market.
5. Step 5: Conclude that the best description of market penetration is the firm increasing sales of existing products to current customers by offering discounts.