Thus the market analysis needs to be spot on and the market penetration strategy should be adopted only if there is scope for increasing market share in an existing market. What if the market becomes too saturated? Fighting for a higher market share in a saturated market accounts for higher expenses and lower profitability. On the other hand, market penetration might not be the strategy you are looking for. There needs to be a combination of marketing and sales promotions if you have to grow in an existing market with an existing product. Thus they need to be used optimally by providing them the right information at the right time. At the same time, your current group of employees are the best people to notice any growth opportunities in the existing market. By using market penetration, you are ensuring that only the existing resources of the firm are used and no extra costs need to be incurred in setting up a new unit for. Several things have to be considered when adopting the Market penetration strategy. Also Read Strength in SWOT analysis - Examples of strengths for SWOT analysis
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