Having the right market-penetration strategy — competing on price, quality and uniqueness — can determine whether your business succeeds or fails. When you start your business, you have to penetrate the market and compete with established players. Even after you're established you may need new strategies to maintain your market share. Success stories from the business world show how to do it. Underselling the competition is a classic method of penetrating the market. Walmart and Costco both attract customers by promising to sell them things cheaply.
Using The Ansoff Matrix to Develop Marketing Strategy
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.
Usually, it is applied to merchandise that is selling in a specific geography. It doesn't matter what line of business you are in - whether you run a large technology firm or you are a solopreneuer, you need a game plan. Your game plan must be tailor-made to your objectives, industry, and opportunities. An integral aspect of the aforementioned strategic plan is a marketing plan.
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.