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    Question

    A bank expanding its product portfolio to include

    insurance and mutual funds is pursuing:
    A Market penetration Correct Answer Incorrect Answer
    B Diversification Correct Answer Incorrect Answer
    C Harvesting Correct Answer Incorrect Answer
    D Line contraction Correct Answer Incorrect Answer
    E Undifferentiated marketing Correct Answer Incorrect Answer

    Solution

    Diversification involves entering new product categories. Why others are incorrect: Penetration increases share of existing product; Harvesting reduces support; Line contraction removes variants; Undifferentiated ignores segmentation. Banking Example: Bancassurance tie-ups.

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