The Penetration Strategy – the Concept of Taking Aggressive Action to Increase the Share of Total Sales in a MarketEssay Preview: The Penetration Strategy – the Concept of Taking Aggressive Action to Increase the Share of Total Sales in a MarketReport this essayThe penetration strategy is the concept of taking aggressive action to significantly increase your share of total sales in a market. The resulting increase in sales volume generally allows a company to produce goods or obtain goods at a lower cost, allowing it to generate a higher percentage of profit. In addition, as the organization gains new market share, its competitors sales decline, which may force some of them to withdraw from the market. A company can engage in a penetration strategy in several ways. The most common alternatives are the following:
Using a Penetration Strategy
The most commonly used method of increasing sales is taking advantage of the existing network. You can follow a single company’s steps and then increase your business by setting up a one time and recurring fee-based monthly schedule. For example, for 20 clients on a monthly basis, your office is often located in a large area of the city and has no available parking spaces available. When this issue is addressed, your business will increase its business by increasing its monthly and quarterly membership fees by 2 percent. As your sales grow, its membership fees rise, resulting in better revenue growth and/or a higher price for business.
Using a Penetration Strategy
At the client level, the only way to do so is to take advantage of the existing network, which is essentially a distribution network. There is no “gateway” method of taking advantage of the existing network, and, in fact, is what makes penetration a viable method for companies. In exchange for a fee, a client offers an opportunity to use the new network for your business. For example, if the company offers another service, such as a Web service, a customer may be able to use that service for free while they still have the business to fulfill its obligations. Since you can offer a monthly and recurring fee-based monthly schedule, you can expect to generate up to 3 percent more sales. In addition, since the company’s service can’t be duplicated on a monthly subscription basis at a later time (when the company is closing down), your business’s business has more time to maintain a high volume of sales.
Using a Penetration StrategyAnd
This strategy is used especially when you are starting out. An early penetration strategy is often used to increase the share of total sales in a market and then reduce it by taking advantage of new network factors. For example, an early lead-lead strategy can be used to increase sales by increasing sales in a more targeted way. Alternatively, you can also increase your share of total sales by taking advantage of the existing network factors such as customer referrals, increasing in-person contacts, and other means to increase sales. The first point where an early lead and an early subscription strategy can be used is when the company is closing down and making a decision that will increase your total sales.
Using a Penetration Strategy
When a business tries to expand to a new state (say, a region that has lost a significant number of businesses), it is crucial to use an early penetration strategy. Once a business tries to expand, however, it must first identify new markets and grow its share rapidly. If an organization can only grow within a particular geographic area, they generally will not be able to attract an influx of new businesses or users. This is because a business needs to be able to expand rapidly when it decides to break its current geographic location and then return to a specific location. This will create a high-risk situation to expand quickly if it attempts to grow in a single location because it doesn’t want to be in an area outside the range it intends to expand in, or because it is trying to make the same point in a different location without the help of the original client. In the case of an
Price reduction. The most common penetration strategy is simply to reduce prices. If customers are price sensitive, they will react by buying more of the companys products and services. However, this approach only works if a companys offers are considered to have at least the median level of quality of competing offers. This approach is not good when competitors can easily match or exceed the companys reduced prices, triggering a price war. In addition, lower prices may reduce customers perception of the value of a companys goods and services, so that a return to higher prices at a later date cannot be achieved.
Improvement of terms. A company may offer longer payment terms or a more generous product return policy. This approach will likely allow the company to increase its sales to the most financially unstable customers in a market, and can result in significant bad debt losses. More funds are also needed to pay receivables that are unpaid for longer periods of time.
Expanded marketing. A company can spend more marketing funds to improve the brand image of its products. If combined with the absence of any increase in product prices, this can lead to a perception that a companys offers are a godsend, resulting in additional market share.
Product differentiation. One of the best penetration strategies is product differentiation, where