The marketplace you're striving to break into could already be experiencing high saturation. You're also trying to spread your brand's reach and get a bigger slice of the pie. With market penetration, you're not just aiming to increase your sales volume. After all, you're essentially playing in a familiar field. Market penetration is generally seen as less of a gamble than other growth strategies under Ansoff's product-market growth matrix. Pros And Cons Of Market Penetrationīefore you jump the gun and start pouring your resources into market penetration strategies, take a moment to look at the bigger picture and weigh both the advantages and drawbacks of this approach. This two-by-two grid helps management teams plan and evaluate business growth strategies while simultaneously helping them conceptualize the severity of risk associated with each strategy. This intuitive model, labeled as the Ansoff Matrix, consists of four strategies for visualizing potential future growth: (null) Igor Ansoff, the father of strategic management. But if you want to expand your business to Canada or Mexico, a market development strategy is the way to do it.īoth of these terms stem from the renowned strategic management framework established by H.

Market development is exploring uncharted waters in search of new or competitive markets for your already-existing products.įor example, if you're a small business looking to increase your sales in the US market, then market penetration is your strategy.

Market penetration focuses on deepening your presence in an existing market with your current product or service.After all, both strategies are about increasing current sales volume and customer reach.īut the most significant difference between these two strategies lies in their objectives' Market DevelopmentĮntrepreneurs often make the mistake of lumping market penetration and market development together. Market penetration strategies can also help you further saturate your customer base in a market you're already in. But there's more to it than just getting your foot in the door. That's where market penetration strategies come in.Ī market penetration strategy helps you expand into existing markets. Watching your business sputter along like a faulty car with a bad engine can feel like a punch to the gut, especially when you know they have the potential to take the market by storm. For more information, read our affiliate disclosure. If you click an affiliate link and subsequently make a purchase, we will earn a small commission at no additional cost to you (you pay nothing extra). Important disclosure: we're proud affiliates of some tools mentioned in this guide.

2 Real-Life Examples Of The Effect Of Social Media On Market Penetration ☝️.The Effect Of Social Media On Market Penetration 🙌.9 Great Market Penetration Strategies 🤩.Calculation Of Market Penetration Rate 🧮.

This article will take a closer look at how social media can help your business break into your target markets with greater penetration. If you're still not sold on the value of social media for market penetration, keep reading. With numbers like these, it's clear that social media is a force to be reckoned with when it comes to market penetration. Plus, for 43% of all internet users, social media is their primary source when looking for information on what to buy. Statistics show that 52% of the time, brand discovery originates from social media. What started as innocent digital playgrounds for folks to mingle and chat has since flourished into a potent pool of opportunities for businesses to penetrate their target markets and make their mark. But today, their applications have expanded far beyond that. The dawn of the 2000s brought a new era of communication and connection with the introduction of social media.īack then, these platforms existed for a single purpose: to help connect people in a digital, social setting.

Schick straight razor