Market penetration chart










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Market Penetration And Market Potential

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Subscription services market penetration

Management eBooks About eBook Formats. 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. Examples of this strategy can be seen in the newspaper, telecoms, and cable TV industries, where the larger players now dominate. Today's Top Picks for Our Readers. Previously it had been users in their 20s who were seen as the biggest group of first-time users. 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. This strategy requires an aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for smaller competitors. More recently there has been the introduction of loyalty campaigns, where the supermarkets compete for market share through customer loyalty programs. 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. Market penetration is one of the four alternative growth strategies in the Ansoff Matrix. This strategy involves selling more to current customers and to new customers who can be thought of as being in the same marketplace. 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. One key constraint is that you cannot allow anything in your drive to grow market share to compromise your existing success.

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Go-to-Market Strategies: The Ansoff Product-Market Growth Matrix is a very useful go-to-market strategy development tool. Ansoff’s matrix allows marketers to evaluate go-to-market decisions to grow the business via four possible product/market combinations. The matrix consists of.

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Description: 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. Key Points Market penetration involves focusing on selling your existing products or services into your existing markets to gain a higher market share. 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. Understanding why this information is being asked for should help you to capture and pass on the most relevant and significant information. 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. A market penetration strategy involves focusing on selling your existing products or services into your existing markets to gain a higher market share. Increase usage by existing customers Another approach to market penetration is to persuade your existing customers to use your product or service more frequently. This strategy involves selling more to current customers and to new customers who can be thought of as being in the same marketplace. 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. 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. One key constraint is that you cannot allow anything in your drive to grow market share to compromise your existing success.
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