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Market Penetration and Its Methods
An organisation in this method enhances market share by making higher marketing efforts for the commodity or services which exists in the present market. It means that a firm does not create any new product nor does it make any modification to its existing goods. This approach increases the volume of sales of the present commodity by focusing on existing market’s marketing efforts. Market penetration approach can be used solely as well as with other methods.
Effective marketing of this method includes:
- Increasing salesperson
- Increasing advertising expenditure
- Sales promotion
- Increase in publicity efforts
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General Guidelines for Effective Results
There are particular scenarios where the strategy of market penetration is more suitable. To have satisfactory result through this approach, an organisation follows a few specific guidelines. They are:
- When current markets are not saturated
- Positively forcing the existing customers to increase the product’s rate of usage
- Fall in the competitors’ market share though there is a growth in sales in overall industry
- Substantial competitive benefits available by greater scale of economies
Market Penetration Aspects
This strategy has two aspects rapid and slow market penetration. In a rapid method, two assumptions include a decrease in price and to increase promotional activities. In slow market penetration, the two hypotheses involve decreasing the cost, but the promotional activities are constant. There is no increase or decrease in it. Know more from our Market Penetration homework help experts.
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