Final answer:
The strategy for growth in which the firm encourages existing customers to buy more of the firm's current product is market penetration.
Step-by-step explanation:
The strategy for growth in which the firm encourages existing customers to buy more of the firm's current product is market penetration. Market penetration involves increasing sales of existing products to existing customers, often through techniques such as advertising, sales promotions, and loyalty programs.
One example of market penetration is when a fast food restaurant offers a discount coupon to its regular customers to encourage them to visit more frequently or to buy additional items.
Besides advertising, monopolistically competitive firms can increase demand for their products through strategies such as product differentiation, expanding distribution channels, improving customer service, and offering special incentives to customers.