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Market penetration

One of the four strategies of Ansoff’s matrix – a well known model to use when making strategic decisions about marketing, and specifically over strategies for achieving growth in a national and an international context. Market penetration involves selling more of the same products to the same type of people ie to present markets / market segments. It is considered the least risky of the four strategies as it involves products and markets in which the business has already gained experience. But, it is only possible if either the market is growing, or the firm has sufficient competitive advantage to gain market share from rivals. It requires sound knowledge of customer purchasing habits and competitor activities, and possible market research into the attitudes and opinions of non-users. This may reveal that changes are required to various aspects of the marketing mix (excluding the product itself) in order to attract new customers. The emphasis is, however, often on promotion. For example: More effective promotion of present product benefits / uses; Identification and promotion of new product uses. Alternatively, increasing the average quantity purchased by existing users may simply involve a minor change to print on packaging. For example, adding the words ‘and repeat’ to the directions on the back of a shampoo bottle have been an effective strategy in increasing the quantity purchased.

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