Put simply, a market penetration strategy is a process of infiltrating an already existing market where current or similar products already exist with a new product from your company or organization. It can also refer to the strategy a company or organization uses to expand or further saturate their customer base in a market they are already in. For example, you may develop a market penetration strategy if you are launching a new product that would appeal to a different segment of your current market. Market penetration strategy is part of the Ansoff Matrix , a strategic framework developed in that helps company leaders plan for future growth. Now, compare your rate to the average market penetration rate to see where you stand:. Adjusting increasing or dropping pricing to appeal to new audiences.
Strategies for Market Penetration To Increase Sales and Grow Your Online Business
Everything You Need To Know About Market Penetration | Paperflite
If you have an established business you will have more resources and a different approach. If you have a startup things can be more challenging and knowing different strategies for market penetration can put you in a much better position. In this article we will explore different strategies for market penetration that can help your established business or startup increase sales and grow your online business. We will also take a look into some different components of market penetration that you may have never considered. Market penetration can be either an activity or metric. Some companies and marketing individuals chose to use both definitions in order to gain a more precise understanding behind the effectiveness of the strategies they use. Market penetration defined as an activity is the idea of going to market with a product in an existing and proven market which has similar products or services.
6 Market penetration examples for successful expansion
There are many market penetration examples that have been tried and tested for retail expansion strategies. And the recipe for success is always different. Market penetration can be understood as a strategy to enter into a new market.
Every young company or startup needs to express themselves to get a share of the market. The problem is that the market may already be occupied by richer and more successful companies that do not want to see new players in their field. Implementing a market penetration strategy can be an option in such a situation, helping a young company gain market share. In this article, we look at the concept of market penetration.