Concept of market penetration

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The aim of market penetration is to effectively use your product, enter the market as quick as possible and seize a large market share. Furthermore, market penetration is frequently used a measure to determine, whether your product or a service is capable of capturing a fixed percentage of the market. Price Adjustment — One of the most frequently used market penetration strategy is price adjustment.

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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.

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Is market penetration pricing the best strategy for your business? Does it fit your marketing mix product segmentation plan? Use a decision making model to assess which pricing strategies are your best-fit, especially when marketing a new product.

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Endya has taught corporate training courses and led seminars in various business topics. Log in or sign up to add this lesson to a Custom Course. Log in or Sign up. Laura owns a company based in the United States that has done exceptionally well within the country.

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Market penetration refers to the successful selling of a product or service in a specific market. It is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service. Igor Ansoff first devised and published the Ansoff Matrix in the Harvard Business Review inwithin an article titled "Strategies for Diversification".

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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.

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As soon as a company enters a new market, it strives for market penetration. The main objective behind the market penetration strategy is to launch a productenter the market as swiftly as possible and finally, capture a sizeable market share. Market penetration is also, sometimes used as a measure to know whether a product is doing well in the market or not.

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Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service. Market penetration can also be used in developing strategies employed to increase the market share of a particular product or service. Market penetration can be used to determine the size of the potential market.


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