Questions: Kraft Foods recently introduced its advertising and couponing to its current cheese customers. It appears that Kraft is pursuing what kind of opportunity?

The answer is market penetration.

Market penetration involves increasing sales of existing products to the current market. By introducing advertising and couponing to its current cheese customers, Kraft Foods is trying to increase the consumption or purchase frequency among its existing customer base. This strategy aims to gain a larger share of the market without changing the product or targeting a new market.

Market development would involve introducing existing products to new markets or segments. Since Kraft is targeting its current cheese customers, this option does not apply.

Mass marketing refers to targeting a large, broad market with a single marketing strategy. While Kraft's actions could be part of a mass marketing strategy, the specific focus on current cheese customers suggests a more targeted approach.

Diversification involves introducing new products to new markets. Kraft is not introducing a new product or entering a new market, so this option is not relevant.

Product development involves creating new products for the existing market. Kraft is not introducing a new product but is instead focusing on promoting an existing product to its current customers.