Market penetration pricing relies on the strategy of using low prices initially to make a wide number of customers aware of a new product. Penetration pricing examples include an online news website offering one month free for a subscription-based service or a bank offering a free checking account for six months.
What is market penetration strategy?
Market penetration strategies allow a brand to take its existing product or service to an already thriving market with high demand and begin drawing-in a larger share of the entire market, eventually draining competitors of opportunity and money.
What product uses market penetration?
Cell phone carriers and smartphones: Some carriers offer customers inexpensive or free smartphones in return for a long-term contract. Technology companies creating the phones employ this strategy too. Android phones are often priced low so customers build brand loyalty and Android achieves greater market penetration.Sep 3, 2021
What are the 5 marketing strategy?
The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE. Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments.
What are the main marketing strategies?
- Social Networks and Viral Marketing.
- Paid Media Advertising.
- Internet Marketing.
- Email Marketing.
- Direct Selling.
- Point-of-Purchase (POP) Marketing.
- Co-Branding, Affinity, and Cause Marketing.
- Conversational Marketing.
What is the importance of market penetration strategy?
Market penetration provides companies with enormous insight as to how their customers and the total market view their products. The figures can, in turn, be compared to specific competitors to determine how the company is faring in its sales efforts and how its products and services stack up to the competition.