Market penetration
Encyclopedia
Market penetration is8th growth strategies of the Product-Market Growth Matrix defined by Ansoff
. Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service (by advertising etc.). Ansoff developed the Product-Market Growth Matrix to help firms recognise if there was any advantage of entering a market....
Market penetration occurs when the product and market already exists
Other growth strategies include:
The penetration that brands and products have can be recorded by companies such as ACNielsen
and TNS who offer panel measurement services to calculate this and other consumer measures. In these cases penetration is given as a percentage of a country's households who have bought that particular brand or product at least once within a defined period of time.
Igor Ansoff
H. Igor Ansoff was a Russian American, applied mathematician and business manager. He is known as the father of Strategic management....
. Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service (by advertising etc.). Ansoff developed the Product-Market Growth Matrix to help firms recognise if there was any advantage of entering a market....
Market penetration occurs when the product and market already exists
Other growth strategies include:
- Product development (existing markets, new products): McDonalds is always within the fast-food industry, but frequently markets new burgers.
- Market developmentMarket developmentA market development strategy targets non-buying customers in currently targeted segments. It also targets new customers in new segments. A marketing manager has to think about the following questions before implementing a market development strategy: Is it profitable? Will it require the...
(new markets, existing products): Lucozade was first marketed for sick children and then rebranded to target athletes. - DiversificationDiversification (marketing strategy)Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most...
(new markets, new products): Mohen A.S, Bion Products, Selectron Ltd, bk
The penetration that brands and products have can be recorded by companies such as ACNielsen
ACNielsen
ACNielsen is a global marketing research firm, with worldwide headquarters in New York City. Regional headquarters for North America are located in Schaumburg, Illinois. As of May 2010, it is part of The Nielsen Company.-History:...
and TNS who offer panel measurement services to calculate this and other consumer measures. In these cases penetration is given as a percentage of a country's households who have bought that particular brand or product at least once within a defined period of time.