Market penetration startegy











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Increase usage by existing customers Another approach to market penetration is to persuade your existing customers to use your product or service more frequently. 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. 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. Management Templates Management Checklists. One key constraint is that you cannot allow anything in your drive to grow market share to compromise your existing success. Understanding why this information is being asked for should help you to capture and pass on the most relevant and significant information. Examples of this strategy can be seen in the newspaper, telecoms, and cable TV industries, where the larger players now dominate.

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Management Templates Management Checklists. Secure dominance of growth markets Another approach you could take is identify a new demographic for your product, for example another age group. Increase usage by existing customers Another approach to market penetration is to persuade your existing customers to use your product or service more frequently. A market penetration strategy involves focusing on selling your existing products or services into your existing markets to gain a higher market share.

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More recently there has been the introduction of loyalty campaigns, where the supermarkets compete for market share through customer loyalty programs. Increase usage by existing customers Another approach to market penetration is to persuade your existing customers to use your product or service more frequently. It relies on you having successful products in a market that you already know well. 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. With a mature market there are no more demographic sectors to exploit and the only way to attain market share is to take it from competitors. The key role you are likely to be asked to perform is capturing the intelligence that is required to make informed decisions. 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.

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Description: 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. This would involve focusing on the areas of sales and marketing responsible for managing the pricing and promotion of the product. A good example of this would be cell phones. More recently there has been the introduction of loyalty campaigns, where the supermarkets compete for market share through customer loyalty programs. 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. Market Penetration Strategy. Secure dominance of growth markets Another approach you could take is identify a new demographic for your product, for example another age group. Management Templates Management Checklists.
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