Generally, the final strategy involves a combination of these options. Journal of Political Economy, 6 , — Market penetration is not only a strategy but also a measurement in percentage for popularity of a brand or a product in the category, in other words, the number of customers in the market that buys from a brand or product. However, it is exceptional if the sales growth trend shows the gross increase but is much less significant comparing to its competitors, because this could indicate the business's market share is actually shrinking, then this strategy can be a good approach to try regain its market share. The most common penetration strategy is simply to reduce prices. Large market penetration is the key to fully tapping these markets.
Market Penetration Strategy: Definition & Pros and Cons
If you market through a sales force, then you will need to develop some sales strategies and prepare your sales people with all the promotional tools and information they will need to solicit new customers. Ability to save and export citations. It is much easier to lose customers than it is to gain them. What is the relative strength of your competition? What would customers be willing to pay? Current population trends of your targeted customers Expanding, shrinking or stable?
Possibly, the most recognizable practice of this growth strategy is by adopting the franchise model, which was how Walmart, Subway and The Body Shop grew. A brand's penetration share, in contrast to penetration rate, is determined by comparing that brand's customer population to the number of customers for its category in the relevant market as a whole. Wrestling was an early favorite of network TV, but it faded when the Dumont network folded in Assael, Penetration pricing is frequently used by network provider and cable or satellite services companies. Next Porter Generic Strategies.
Personal health, enjoying the outdoors, professional success and personal relationships. This is strategy for company growth by increasing sales of the current products to current market segments without changing the product. Capturing this market share would increase his annual sales by 40 percent. Istanbul Istanbul has often been seen as the bridge between East and West. What is Important to Him: Try to determine if your new target market is growing, stable or declining.