Market penetration policy

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A good example of this would be cell phones: The company begins to raise the price of the product once it has achieved a large customer base and market share. Market penetration is not only a strategy but also a measurement in percentage for popularity of a brand or a product in the category, in other words, the number of customers in the market that buys from a brand or product. Examples of this strategy can be seen in the newspaper, telecoms, and cable TV industries, where the larger players now dominate. Retrieved March 20,from http: Mentioned in These Terms market penetration pricing. By using this site, you agree to the Terms of Use and Privacy Policy.

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However, businesses have to ensure they have enough capital to stay in surplus before the price is raised up again.

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The Disadvantages of Market Penetration Policies

You Also Might Like There are several tactics you could use to do this, including loyalty schemes, adding value to the current product, or making alterations to the product that encourage greater use. Another good example is the rapid growth of the supermarket chains, which have taken market share from small high street grocers who are unable to compete on price and product range. Market penetration is one of the four alternative growth strategies in the Ansoff Matrix. Penetration pricing is a marketing technique which used to gain market share by selling a new product for a price that is significantly lower than its competitors.

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