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Terry
0450-20-M-J-12-3e
Chan
TOPIC QUESTION - PAPER 1
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Chan
May 17, 2026 at 7:36:21 AM
May/June 2020
Version 2
3.0 Marketing
3.1 Marketing, Competition and Customers
YOUR ANSWER
Selling to different market segments will expand Kala’s market share. It will also reduce business risk from falling demand from one market segment. However, Kala will need to introduce new range of sports clothes for different segments that may incur promotion cost. As such, selling to different segment is not the best way to respond to increased competition as it may be too costly for a small business as it will require market research and promotion.
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