Market penetration–

 growing sales of a current product in a current market.

Traditionally we talk about four main ways that a company can can increase the sales of a current brand using a market penetration strategy, i.e., selling a current product in a current market. They are:

  • Increase frequency of purchase
  • Increase amount per purchase occasion
  • Sell to non-customers
  • Sell to non-buyers

Non-customers are those people who buy in the product category but not your brand. Non-buyers do not buy in the product category at all.

The market is "current" in the sense that it is the company or brand's currently-defined target market and thus has a certain market potential. Whenever the market potential is changed, then the market is considered "new."

In the fast food market, McDonald's could increase frequency of purchase through an advertising campaign that gave consumers a reason to go there more often; they could increase amount per purchase occasion through "value meals;" they could use both of these marketing actions to gain customers from other fast food restaurants; finally, they could use these and other marketing actions to get consumers in the market who don't eat at fast food places to do so.

Any use of price reductions, expanded distribution in the current market, sales force effort or promotions would be ways to implement a market penetration strategy.

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