¿Qué es la Market Penetration penetración en el mercado?
Market Penetration, or market penetration as a commercial strategy, is the process of introducing a product into an existing market where similar options already exist, and taking market share away from the competition.
Market penetration is usually accompanied by a starting price lower than the competition. Depending on the investment in communication we can find:
Types of Market Penetration
Quick penetration
We place the product or service at a low launch price and accompany it with a high investment in communication. This strategy is recommended for large markets where the product or service is not well known, where consumers are price sensitive, where there is strong competition and where we expect production costs to decrease with the scale of production.
Slow penetration
We place the product or service at a low launch price and accompany it with a low investment in communication. This strategy is recommended for large markets, where the product is well known and consumers are price-sensitive.
Market Penetration Advantages
One of the biggest challenges a company faces is to make itself known, and this is even more complicated if the market has large brands in the sector that monopolize the majority of consumers. Good market penetration has the following advantages:
- Increased sales: Increasing sales will considerably increase the results of your company in the market, you must create a strategy to get your products to the market as soon as possible to make them visible to your target audience.
- Improve your brand value: If you increase your brand value, you can promote your products based on your name within your industry.
- Better product positioning: Usually, start-up companies find it difficult to outperform large competing brands. However, with the right market penetration campaign you can justify higher selling prices and effectively position your brand in the market.