Market penetration techniques








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This strategy involves selling more to current customers and to new customers who can be thought of as being in the same marketplace. Market Penetration Strategy. There are four approaches you can adopt when implementing this strategy. If the team's chosen approach defines the growth market as a 'new' one then a market penetration strategy will be replaced with one of market development, which is covered in the next section. This decision is likely to be based on how your organization is going to approach this growth market. Secure dominance of growth markets Another approach you could take is identify a new demographic for your product, for example another age group.

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Another good example is the rapid growth of the supermarket chains, which have taken market share from small high street grocers who are unable to compete on price and product range. Maintain or increase the market share of current products You can achieve this by adopting a strategy that is made up of a combination of competitive pricing strategies, advertising, and sales promotion. Restructure a mature market by driving out competitors Many organizations find themselves in a mature or saturated market and to achieve further market share requires a different approach. A good example of this would be cell phones.

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Examples of this strategy can be seen in the newspaper, telecoms, and cable TV industries, where the larger players now dominate. This was exactly what happened in the cell phone market when it was realized that teenagers were emerging as a key demographic. The key role you are likely to be asked to perform is capturing the intelligence that is required to make informed decisions. Substantial growth in market share and dominance in this sector was achieved by ensuring cell phone companies' promotions met the needs of this younger group. This strategy requires an aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for smaller competitors.

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Description: This can be achieved in four ways. A good example of this would be cell phones. If the team's chosen approach defines the growth market as a 'new' one then a market penetration strategy will be replaced with one of market development, which is covered in the next section. Today's Top Picks for Our Readers. Previously it had been users in their 20s who were seen as the biggest group of first-time users. Key Points Market penetration involves focusing on selling your existing products or services into your existing markets to gain a higher market share.
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