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Product market penetration

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Ansoff's Matrix is a marketing planning model that helps a business determine its product and market growth strategy. These are described below:. Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.
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Penetration Pricing

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What is Penetration? Definition of Penetration, Penetration Meaning - The Economic Times

Penetration pricing is a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering. Market penetration pricing relies on the strategy of using low prices initially to make a wide number of customers aware of a new product. Penetration pricing examples include an online news website offering one month free for a subscription-based service or a bank offering a free checking account for six months. Penetration pricing, similar to loss leader pricing , can be a successful marketing strategy when applied correctly. It can often increase both market share and sales volume. However, the key to a successful campaign is keeping the newly-acquired customers. For example, a company might advertise a buy-one-get-one-free BOGO campaign to attract customers to a store or website.
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The Product Market Expansion Grid Explained

First an applied mathematician, then an economist, Ansoff later became a planning specialist and eventually vice-president for Lockheed where he gained experience in analyzing the complexities of business. The Product Market Expansion Grid is one such contribution to corporate strategic planning that can be used by any company looking to develop strategies to grow a business. The Product Market Expansion Grid, also called the Ansoff Matrix, is a tool used to develop business growth strategies by examining the relationship between new and existing products, new and existing markets, and the risk associated with each possible relationship. The matrix aids growth plans through the introduction of existing or new products, in existing or new markets.
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Market penetration refers to the successful selling of a product or service in a specific market. It is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service. Igor Ansoff first devised and published the Ansoff Matrix in the Harvard Business Review in , within an article titled "Strategies for Diversification". With numerous options available, this matrix helps narrow down the best fit for an organization. This strategy involves selling current products or services to the existing market in order to obtain a higher market share.
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