Market penetration experimental design

As soon as a company enters a new market, it strives for market penetration. The main objective behind the market penetration strategy is to launch a product , enter the market as swiftly as possible and finally, capture a sizeable market share. Market penetration is also, sometimes used as a measure to know whether a product is doing well in the market or not. Start Your Free Marketing Course. A company trying to adopt the concepts of market penetration must remember to also implement specific plans and tactics to challenge the competitors and boost sales figures.

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Diagram chart with pen, business and finance concept image by JoLin from Fotolia. Market penetration analysis provides a firm with information necessary to understand its position in the market. A company's market share is frequently used as a performance measure. It assists marketing managers to focus efforts that help a firm to grow its market share or to maintain its market dominance.

Market penetration refers to the successful selling of a product or service in a specific market. It is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service. Igor Ansoff first devised and published the Ansoff Matrix in the Harvard Business Review in , within an article titled "Strategies for Diversification". With numerous options available, this matrix helps narrow down the best fit for an organization.