Market penetration strategy definition

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From: altirity
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Added: 08.02.2021
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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. In this article, we look at the concept of market penetration. We also tell you how to create a market penetration strategy, and describe the benefits it brings.
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How to Create a Market Penetration Strategy and Make the Market Play by Your Rules

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What is Market Penetration? - Definition | Meaning | Example

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.
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6 Market penetration examples for successful expansion

Related to market penetration: Market development , market penetration pricing. It is important that a company, especially a large company, maintains a substantial market share in order to remain competitive. However, companies that achieve too high a market share through mergers , acquisitions , or other methods may become regarded as monopolies and violate local antitrust laws.
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Do it well and you can start making more money without straying too far from your current range, and without making any major changes to your current marketing strategy. Some involve selling new products to existing customers. Others involve selling existing products to new customers. But a marketing penetration strategy involves selling your existing products or services to your existing market.
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