Market penetration marketing











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The tactics of this approach all aim to 'tie in' your customers to your product or service by making it more difficult for them to move to another supplier. Increase usage by existing customers Another approach to market penetration is to persuade your existing customers to use your product or service more frequently. Your role in the discussion senior executives will have in defining their strategy is that of providing the market intelligence or customer feedback that helps to inform the executive team of the current dynamics of the market. 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. Examples of this strategy can be seen in the newspaper, telecoms, and cable TV industries, where the larger players now dominate. If the team's chosen approach defines the growth market as a 'new' one then a market penetration strategy will be replaced with one of market development, which is covered in the next section. 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. Secure dominance of growth markets Another approach you could take is identify a new demographic for your product, for example another age group. Understanding why this information is being asked for should help you to capture and pass on the most relevant and significant information. Key Points Market penetration involves focusing on selling your existing products or services into your existing markets to gain a higher market share. Maintain or increase the market share of current products You can achieve this by adopting a strategy that is made up of a combination of competitive pricing strategies, advertising, and sales promotion. This decision is likely to be based on how your organization is going to approach this growth market. 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. This can be achieved in four ways.

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Description: A good example of this would be cell phones. For example, if your current customer base consists of men aged between 16 and 25 then this strategy would involve attempting to sell more of your existing products or services to this same group. There are four approaches you can adopt when implementing this strategy. The key role you are likely to be asked to perform is capturing the intelligence that is required to make informed decisions. More recently there has been the introduction of loyalty campaigns, where the supermarkets compete for market share through customer loyalty programs. An excellent example of such a strategy would be for you to identify a change in the age distribution of your product users and to then aggressively market your product to this age group. Key Points Market penetration involves focusing on selling your existing products or services into your existing markets to gain a higher market share. Substantial growth in market share and dominance in this sector was achieved by ensuring cell phone companies' promotions met the needs of this younger group. Your role in the discussion senior executives will have in defining their strategy is that of providing the market intelligence or customer feedback that helps to inform the executive team of the current dynamics of the market. If the team's chosen approach defines the growth market as a 'new' one then a market penetration strategy will be replaced with one of market development, which is covered in the next section. Management eBooks About eBook Formats. Maintain or increase the market share of current products You can achieve this by adopting a strategy that is made up of a combination of competitive pricing strategies, advertising, and sales promotion. Market Penetration Strategy. A market penetration strategy involves focusing on selling your existing products or services into your existing markets to gain a higher market share. This decision is likely to be based on how your organization is going to approach this growth market.
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