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Market Penetration Strategy

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.

Market Penetration Examples

- Airtel promoting its services to penetrate in the Indian market.

- Pizza hut offering discounts to the customers at night to increase the sales and each customer purchase value.

- Mobile service providers offering low price packages to increase talk time of the customers.

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9 Responses to "Market Penetration Strategy"

  1. Mitsuko Perrins says:

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  2. amin says:

    Would you please introduce me a source on market penetration strategies.

    References for current article are fully satisfy my wish.

    Thank you.

  3. Adam says:

    Fred R david Strategic management

  4. tthanx says:

    thanx for everything.

  5. tthanx says:

    thanks for everything.

  6. k11365 says:

    Was doing a little research to help myself understand some basic principles of global marketing, and this page has been a great help. Thanks

  7. Adam says:

    Thanks a lot

  8. K. Marciniak says:

    Thank you for the education. I am starting a wholesale trading business in Nigeria and was told to employ market penetration strategy.
    Good information :)

  9. Mushfiqul Haque Mukit says:

    Really very happy to get such kind of help.Wish to get better in next.

    FB/Mushfiqul Haque Mukit

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