Answer to Question #188529 in Management for Karabo Maluleke

Question

1.1. The Greenhouse is a nursery that sells mainly outdoor plants, shrubs, and trees. They are open five days (Monday to Friday) a week and are situated on the outskirts of a relatively large suburb where single professionals, young families and elderly people live. The Greenhouse has a children’s play area and a small petting zoo.

Identify two (2) ways as too how market penetration can be applied to this scenario.

(4 marks )

Answer 1

Market penetration;

1. pricing- the greenhouse can offer lower prices to attract young families and the elderly. This is to ensure that the price set is fair and attractive to them creating an interest in the products that they are selling.
2. Promotion- increasing your promotional efforts, Word-of-mouth remains a stellar way to spread the word and garner more advocates. the green house can offer membership and/or referral programs. Advocates create support by actively recruiting friends and family, helping the brand penetrate a larger share of the market and make more money.