Sales Strategy

Strategies To Elevate Market Share and Brand Impact November 02, 2023 (0 comments)

New York, NY--Market penetration represents a dual-faceted concept crucial for business growth, serving as both a quantifiable metric and a strategic process. It is instrumental in amplifying the market share and sales volume of a product or service within an existing market.

[Image via Assosia]

Market Penetration as a Measurement

The measurement aspect of market penetration involves calculating a company's market share or proportion of the total potential market captured. It is a vital indicator of a company's success in market infiltration and competitive standing.

According to an Assosia article, market share is calculated as a percentage: Market Penetration (%) = (Number of Customers or Sales in a Specific Market / Total Potential Customers in that Market) x 100

Market Penetration as an Activity

On the strategic side, market penetration refers to deploying specific tactics to expand a company's market influence.

The objective is to attract new clientele while ensuring existing customers remain loyal through repeat business. Core strategies include aggressive pricing, promotional drives, and product innovation, all aimed at fortifying market presence.

The Amazon and McDonald's Approach

Amazon's market penetration strategy leverages aggressive pricing and expansion into new sectors like streaming services and smart devices. McDonald’s employs strategic pricing and menu innovation alongside extensive advertising to entice and retain customers.

Crafting a Market Penetration Strategy

A thriving mrket penetration plan involves dynamic pricing, promotional activities, seeking new markets, innovating products, proactive pricing, and increasing brand awareness.

Strategies are personalized to each company's needs, as seen with Amazon's multifaceted approach and McDonald’s value-focused deals.

Learn more in the entire Assosia article.