Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What term describes the strategy of selling current services in a new market?

1. Market Penetration

2. Market Development

3. Organic Growth

4. Vertical Expansion

The correct answer is: Market Development

The strategy of selling current services in a new market is best described by the term "Market Development." This approach involves taking existing products or services and introducing them to new customer segments or geographical areas where they have not been sold before. By doing this, a business aims to expand its reach and increase its overall market share without making changes to the product or service itself. Market development can involve various tactics, including entering new demographic markets or exploring different locations, which can lead to increased sales and brand awareness. The focus is on reaching out to new customers who may benefit from the existing offerings, thus leveraging the current capabilities of the business in different contexts. In contrast, some of the other options, like market penetration, refer to strategies aimed at increasing market share within existing markets rather than moving into new ones. Similarly, organic growth typically describes growth achieved through the business's internal resources and capabilities rather than external methods. Vertical expansion would imply increasing control over supply chains or distribution channels rather than venturing into new markets for existing services.