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Reading Comprehension: Application Questions

Which of the following businesses best exemplifies the market development strategy?

Very good!

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The electronics company kept selling the same product, its cd player, but changed the market it was trying to sell it to (from teenagers to an older audience).

Incorrect.

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The car company began selling a new product (family cars) to a new market (less affluent).

Incorrect.

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Although the clothing company changed its advertising strategy, it kept selling the existing product (evening wear) to its existing market (same demographic).

Incorrect.

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The computer company changed both its product and its target market.

Incorrect.

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The restaurant sold a new product, its late-night menu, to its existing market. We are looking for an example of a company that sells its existing product to a new market.

An electronics company released a new cd player marketed to teenagers but, when it became clear that teenagers were more interested in mp3 players, changed its advertising slogans to appeal to an older audience. 
A car company known for selling its flashy convertibles to wealthy clients began to sell family vehicles when it opened new dealerships in less affluent areas.
A clothing company ran an advertising campaign showing famous actresses wearing its evening wear in order to appeal to young women, but, when sales did not increase, the company launched an Internet campaign deemed more effective in attracting the same demographic.
When a computer company began selling its software in a foreign country, it was forced to change its products in order to accommodate new languages and regional differences.
A restaurant in a college town which specializes in cheap food for students added a late-night menu in order to keep students who like to stay up late eating at the restaurant.