Example of market penetration








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This strategy involves selling more to current customers and to new customers who can be thought of as being in the same marketplace. There are several tactics you could use to do this, including loyalty schemes, adding value to the current product, or making alterations to the product that encourage greater use. You may also be interested in. More recently there has been the introduction of loyalty campaigns, where the supermarkets compete for market share through customer loyalty programs. The data you provide will help the team decide whether a growth market is an extension of the current market or is truly a 'new' market.

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Marketing Exam 2 Flashcards

This strategy involves selling more to current customers and to new customers who can be thought of as being in the same marketplace. Market Penetration Strategy. The data you provide will help the team decide whether a growth market is an extension of the current market or is truly a 'new' market. This was exactly what happened in the cell phone market when it was realized that teenagers were emerging as a key demographic.

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How to create a sales plan

A market penetration strategy involves focusing on selling your existing products or services into your existing markets to gain a higher market share. The ability of your organization to achieve higher usage by customers can be greatly enhanced by rapidly changing technologies that encourage users to upgrade or that offer more reasons to use the product or service. You should give this strategy careful consideration if you are not in a position to invest heavily or are not comfortable with taking risks, as the amount of risk associated with this strategy is relatively low. The key role you are likely to be asked to perform is capturing the intelligence that is required to make informed decisions.

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Description: Today's Top Picks for Our Readers. Understanding why this information is being asked for should help you to capture and pass on the most relevant and significant information. Restructure a mature market by driving out competitors Many organizations find themselves in a mature or saturated market and to achieve further market share requires a different approach. Secure dominance of growth markets Another approach you could take is identify a new demographic for your product, for example another age group. You should give this strategy careful consideration if you are not in a position to invest heavily or are not comfortable with taking risks, as the amount of risk associated with this strategy is relatively low. The data you provide will help the team decide whether a growth market is an extension of the current market or is truly a 'new' market. Examples of this strategy can be seen in the newspaper, telecoms, and cable TV industries, where the larger players now dominate. Key Points Market penetration involves focusing on selling your existing products or services into your existing markets to gain a higher market share. Another good example is the rapid growth of the supermarket chains, which have taken market share from small high street grocers who are unable to compete on price and product range. You need to be aware of what has made the product a success so far and ensure that nothing you do will undermine it.
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