In a marketing case study, a company successfully increased its market share by improving customer service. What marketing concept does this illustrate?
Practice Questions
1 question
Q1
In a marketing case study, a company successfully increased its market share by improving customer service. What marketing concept does this illustrate?
Brand loyalty
Market penetration
Product development
Diversification
Improving customer service can lead to increased customer satisfaction and loyalty, illustrating market penetration.
Questions & Step-by-step Solutions
1 item
Q
Q: In a marketing case study, a company successfully increased its market share by improving customer service. What marketing concept does this illustrate?
Solution: Improving customer service can lead to increased customer satisfaction and loyalty, illustrating market penetration.
Steps: 5
Step 1: Understand what market share means. Market share is the percentage of an industry or market's total sales that is earned by a particular company over a specified time period.
Step 2: Recognize the importance of customer service. Good customer service helps customers feel valued and satisfied.
Step 3: Realize that when a company improves its customer service, customers are more likely to return and recommend the company to others.
Step 4: Connect customer satisfaction and loyalty to market share. When more customers are satisfied, they buy more, which can increase the company's market share.
Step 5: Identify the marketing concept being illustrated. The improvement in customer service leading to increased market share is an example of market penetration, which focuses on increasing sales to existing customers.
