A market penetration strategy seeks to increase market share of the current product or services in the existing market. This strategy adopted by the firms to raise their sales revenue without making changes in the products or services. The other dimension of market penetration is the existing market which means firm already offering products or services to the customer but can forecast that the existing sales figures can be improved by working on marketing penetration strategy.
Market penetration strategy can be implemented by offering sales, Increasing sales force, increase distribution and promotion of products, more expenditure in marketing and advertising activities will results in increasing sales. It is not guaranteed that market penetration fully works after investing in sales and marketing of products and services, a firm should go for this strategy only if any below of the desirable situation exists.
– Current market is not fully saturated.
– Market share of the competitors are decreasing whereas the industry growth rate is increasing.
– Existing buyers have the potential to purchase same products and services in more quantity.
– When economies of scale provides competitive edge.
All the above conditions gives green signal to the firm to go ahead with market penetration strategy.
I’ve just stumbled upon your site while searching for a tutorial on an related subject. Glad I did too. There’s a lot I like. Anyway, you’ve been bookmarked and I’ll be back soon. 🙂
Would you please introduce me a source on market penetration strategies.
References for current article are fully satisfy my wish.
Thank you.
Fred R david Strategic management
thanx for everything.
thanks for everything.
Was doing a little research to help myself understand some basic principles of global marketing, and this page has been a great help. Thanks
Thanks a lot
Thank you for the education. I am starting a wholesale trading business in Nigeria and was told to employ market penetration strategy.
Good information 🙂
Really very happy to get such kind of help.Wish to get better in next.
FB/Mushfiqul Haque Mukit