Masco Is the Name of a Well-Recognized Company in the Construction

question 172

Multiple Choice

Masco is the name of a well-recognized company in the construction industry.It produces cabinetry,furniture,lighting,and plumbing fixtures for the upper-end homeowner and builder.One of the divisions of Masco is the Delta Faucet Company,which is the leader in the faucet industry.Delta Faucet was founded in 1955.Over the decades,it has developed a legacy based on well-crafted,high-quality products.Since the 1970s,Delta has focused its energies on building loyalty with the builder marketplace.Research in 2007 showed that while builders respect the Delta faucet for its quality,durability,and dependability,household consumers were not enamoured with Delta products.Due to the number of new magazines and television programs devoted to home style,homeowners wanted faucets that were chic and stylish.This was not the image of the Delta Faucet.To change its image,Delta Faucet began a marketing program in which it committed itself to developing new products to appeal to homeowners.It adopted a new slogan,"Beautifully Engineered."
-Refer to Delta Faucet Company.Since Delta was already marketing to homeowners (although not very successfully) ,its development of new styles of faucets to appeal to this underserved market would be an example of which strategy?

• A)market penetration
• B)product penetration
• C)market development
• D)product development

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Definitions:

Marginal Revenue

The additional income obtained from selling one more unit of a good or service.

Marginal Revenue

Additional financial gain from selling an extra unit of a good or service.

Marginal Cost

Incremental cost increase for manufacturing another unit of a product or service.

Total Revenue

The overall amount of money generated from the sale of goods or services before any expenses are subtracted.