Example of market penetration strategy

Facebook wants to bring the Internet to sub-Saharan Africa, where million people could come online in the coming years. Even so, Coca-Cola would not be the power house it is today without knowing when to step out of its comfort zone — the Glaceau acquisition being a clear case in point. As an industry, hospitality has been ripe with penetration pricing. Entering new geographic areas is another way to pursue market development. A small company with an innovative offering can learn from the initiative shown by Netflix.
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Market Penetration: Examples, Definition, Advantages & Disadvantages

Competing in International Markets 7. The main purpose was to increase market share and sales volume. For many firms, concentration strategies are very sensible. A market penetration strategy seeks to increase market share of the current product or services in the existing market. Customers will not care about the brand when they can get the same product for the same quality at lower prices. For example, if your current customer base consists of men aged between 16 and 25 then this strategy would involve attempting to sell more of your existing products or services to this same group. This can be accomplished with some of the techniques used to increase market penetration, such as advertising and bundling, but it directs the message towards previously untapped market segments.
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Pricing Strategies: What Works Best For Your Business?

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. Subscribe in a reader. Powered by Create your own unique website with customizable templates. About the Author Neil Kokemuller has been an active business, finance and education writer and content media website developer since This would involve focusing on the areas of sales and marketing responsible for managing the pricing and promotion of the product. Previously it had been users in their 20s who were seen as the biggest group of first-time users. Home Marketing MKT
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So they have been entering the market through a penetration pricing strategy, by offering a low price for their cider during the introductory phase. A price maximization strategy aims to make pricing decisions that generate the greatest revenue for the company. What am I proudest of about my company? Be sure to have a read of the guide, as you may find that one of the other frameworks will fit a little better with your organization at this stage. Customers will not care about the brand when they can get the same product for the same quality at lower prices.
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