Investing market penetration strategies








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Substantial growth in market share and dominance in this sector was achieved by ensuring cell phone companies' promotions met the needs of this younger group. Consumers mostly fall for the trick because the interest and curiosity that the improved product drives are irresistible. Today's Top Picks for Our Readers. You should give this strategy careful consideration if you are not in a position to invest heavily or are not comfortable with taking risks, as the amount of risk associated with this strategy is relatively low. Imagine, you have numerous competitors that are trying to evolve and progress, they are stealing customers from you that results in lowering your profits and revenue.

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Mastering Three Strategies Of Organic Growth

With a mature market there are no more demographic sectors to exploit and the only way to attain market share is to take it from competitors. This was exactly what happened in the cell phone market when it was realized that teenagers were emerging as a key demographic. Substantial growth in market share and dominance in this sector was achieved by ensuring cell phone companies' promotions met the needs of this younger group. A good example of this would be cell phones. So, the results can be severe because competitors might end up selling their products at an extremely low price and generate almost no profit. Twitter Facebook LinkedIn Instagram. Restructure a mature market by driving out competitors Many organizations find themselves in a mature or saturated market and to achieve further market share requires a different approach.

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Types of growth strategies

Secure dominance of growth markets Another approach you could take is identify a new demographic for your product, for example another age group. Consequently, fast growth is heavily linked with low prices, and the more reasonable they are, the higher the impact will be. The ability of your organization to achieve higher usage by customers can be greatly enhanced by rapidly changing technologies that encourage users to upgrade or that offer more reasons to use the product or service. Everything you need is here. Consumers mostly fall for the trick because the interest and curiosity that the improved product drives are irresistible. Furthermore, the competitor that was first to lower prices, will have to continue doing the same in order to maintain its market leadership.

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Description: So, the results can be severe because competitors might end up selling their products at an extremely low price and generate almost no profit. Market penetration is one of the four alternative growth strategies in the Ansoff Matrix. This strategy requires an aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for smaller competitors. You may also be interested in. The ability of your organization to achieve higher usage by customers can be greatly enhanced by rapidly changing technologies that encourage users to upgrade or that offer more reasons to use the product or service. This strategy involves selling more to current customers and to new customers who can be thought of as being in the same marketplace.
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