Marketing - What is Diversification

The video tutorial discusses the importance of business growth and creating new revenue streams through diversification. Diversification involves developing new products and entering new markets, which can be challenging. It requires careful decision-making regarding product features and market targeting. Maintaining brand fit is crucial to ensure that new products and markets align with the company's brand image. Successfully achieving diversification can lead to increased revenue and business growth.

What is the primary goal of diversification in business?

• To improve employee satisfaction

• To enter new markets and create new products

• To enhance customer service

• To reduce production costs

Why is diversification compared to starting a new business?

• Because it involves creating new products and entering new markets

• Because it involves hiring new staff

• Because it requires a new marketing strategy

• Because it needs a new office location

What is a key challenge when making decisions about diversification?

• Choosing the right advertising agency

• Deciding on product features and target markets

• Selecting the best office furniture

• Hiring the most experienced staff

How can a company ensure successful diversification?

• By maintaining brand fit with new products and markets

• By increasing social media presence

• By reducing product prices

• By expanding the sales team

What is the expected outcome of successful diversification?

• Reduction in product lines

• Growth in revenue and business

• Increased employee turnover

• Decreased market competition