Explain the concept of market penetration and its significance in market analysis.

  • Diversification
  • Market development
  • Market penetration
  • Product development
Market penetration refers to the strategy of increasing market share or sales volume for an existing product or service in the current market segment. It involves tactics such as price adjustments, increased marketing efforts, or product improvements to attract more customers or encourage existing customers to buy more. Understanding market penetration is crucial in market analysis as it helps businesses assess their competitive position and identify growth opportunities within their existing markets.
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