The concept describes different ways and strategies to achieve market penetration, such as cutting prices, increasing advertising, obtaining better store or shelf positions for products, and innovative distribution tactics.
Market Penetration Definition
Market penetration is a low pricing strategy adopted by companies for new and existing products to a attract larger number of buyers and a larger market share (Kotler and Armstrong, 2009). This strategy increases the product sales in the company's present markets through an aggressive marketing mix. It is usually introduced to: increase the rate of product/service usage; encourage repeat purchases; attract consumers away from competitors; or attract current non-users (Drummond et al., 2008).
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Market Penetration References (4 of up to 20) *
- Cravens D.W. and Piercy, N. (2008) Strategic Marketing. (9th Ed.) McGraw Hill, US.
- Drummond, G., Enson, J. and Ashford, R. (2008) Strategic Marketing: Planning and Control. (3rd Ed.) Butterworth-Heinemann.
- Evans, G. (2011) Morrison Reports 8% Profits Rise. The Independent. [Online] Available at: www.independent.co.uk/news/business/news/morrisons-reports-8-profits-rise-2351155.html
- Ho, V. (2009) China’s Telecom Market to Surpass Japan by 2014. [Online] Available at: www.businessweek.com/globalbiz/content/jul2009/gb20090727_871995.htm
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