What is the primary focus of a market penetration strategy?

A market penetration strategy concentrates on increasing the market share of existing products within current markets. This approach aims to boost sales by finding ways to attract more customers or encouraging existing customers to purchase more frequently. It often involves competitive pricing, promotional strategies, and enhancing customer satisfaction to cement a stronger position against competitors.

While other strategies may involve new products or market development, market penetration specifically targets the existing customer base and seeks to increase sales volume without altering the product offerings. This makes it a primarily defensive and offensive tactic to solidify the company's foothold in a known market environment. It can also lead to economies of scale, as increased sales can lower the cost per unit.