This includes developing new products for existing markets, subsequently. This is also called market penetration pricing. Customers generally buy at a certain level of price and quality which is compelled by the social and psychological forces around them. Facebook wants to bring the Internet to sub-Saharan Africa, where million people could come online in the coming years. Market development aims at non-buying shoppers in targeted markets and new customers in order to maximise the potential market. They can be defensive or aggressive, and appropriate options will vary throughout the life cycle of the product.
Market penetration occurs when a company penetrates a market in which current or similar products already exist. Market development involves expansion of the potential market to new customers or new uses, whereas market penetration involves competing to capture a greater share of an established customer base. This could involve persuading current customers to buy more and new customers to start buying or even converting customers from their competitors. Quality over quantity - it's a simple concept taught to us throughout our formative years - but it's one that fits like a square peg in a round hole in today's corporate environment. Knowing When Market Penetration is Appropriate Usually performed by startups and early-stage businesses, market penetration is the first step toward business growth. The number of mobile app subscribers equals approximately It can also be used as an aggressive tactic against competitors, which will have to lower their prices in response or risk being forced out of the industry.
Market penetration - Wikipedia
The secondary competitor research may be compiled from trade publications, news media, and government agencies such as the SEC and U. And no one fast-food chain would be enough to fill the wide open market KFC created. As with any investment strategy there are advocates and detractors of each approach. If, for example, a cable TV company provides services in which fuel costs, fleet maintenance, and transit times between customers and service technicians factors into both the quality, value, and profitability of the enterprise, then expansion into new territories will involve the company either spreading itself too thin, or committing to investing in much more than just the establishment of new locations along.
Description: And no one fast-food chain would be enough to fill the wide open market KFC created. Bundling products can also help gain traction in previously untapped portions of the market. Businesses can also increase their market penetration by offering promotions to customers. Business development and sales are two important aspects of the selling life cycle and while it can be easy to focus on one over the other neither should be neglected.