Question

Marlie designs and manufactures specialty furniture. She has a number of unique products but can only produce in limited quantities. Marlie will probably not use a market penetration strategy because
a. there are few barriers to competitive entry in the market.
b. she could not meet a rapid rise in demand.
c. a low price would indicate low quality.
d. she would have to determine zone pricing discounts.
e. the experience curve effect would drop unit costs too rapidly.

Answer 1

Answer:

b. she could not meet a rapid rise in demand.

Explanation:

Marketing penetration strategy is an approach where a business deliberately sets a low price to a product it's introducing to the market.  The objective of setting the low price is to entice customers to buy the product, thereby creating demand for it. The penetration strategy discourages other firms from entering the market. Marketers using this strategy seeks to establish a sizeable market share for a product within a short period.

Marie cannot apply the market penetration strategy because of her limited production capacity.  This approach increases the demand for a product in a short time. Marie will not be able to cope with an increase in demand at the moment.