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Market Penetration: Everything You Need to Know About This Market Strategy

BY Amanda Stevens - April 10, 2021
Internet Marketing

No matter what business you’re in, from tiny basement or garage solo startups to multinational technology leaders, you have to have a plan on how you intend on reaching various benchmarks and objectives as a business owner. This plan has to be uniquely yours, it’s how your business is going to not just survive, but thrive in an economy that isn’t always smooth sailing.

With this in mind, your plan has to be bespoke to your company. Tailor-made to get the optimal chance of success in your industry, with the given opportunities. This is your marketing plan. Your marketing plan will often be composed of a number of different strategies that are working to accomplish their own goals. They may have goals of growing a sub-brand or new product or reaching out to a new demographic or target audience. One of these marketing strategies and one overall aspect of your branding and marketing matrix is market penetration.

What is Market Penetration?

Market penetration is the marketing strategy that aims to boost sales of current or existing products or services, without making any significant changes to them. In most cases, this is used with merchandise, services, or other consumer solutions that are sold in a particular geographic region. 

Depending on the context of its use, market penetration can also be used as a metric. In this way, it becomes the measure of a particular product or service adoption rate, when compared to the theoretical market and demand for same. In a simple example, a particular operating system “Doors” has a potential target audience of 1 billion people, and of those, only 100 million use any operating system at all. In this example, operating systems have an approximate market penetration of 10%.

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Market penetration can also be used in the context of an activity. This means that market penetration can be viewed as an activity or task that can be pursued and accomplished by a particular company, to increase the amount of business that they control in a given market. Market penetration is not the same as market share, however. Market share is the percentage of that 100 million that use the operating system “Doors”.

What is a Market Penetration Strategy?

A market penetration strategy is a plan by which the company hopes to achieve its goal of increased market penetration or increased market share. There are many possible strategies that can be leveraged to reach business goals, here are a few:

Price Cuts

This is one of the most widely-used market penetration methods. It is tried and true and can work in just about any industry it is applied to. Companies will simply reduce the price of the product or service for sale, in order to capture portions of the market that may have been priced out before. This can be an effective way to gain customers quickly since many people are dissuaded by price alone.


While technically a price cut in a manner of speaking, discounts can offer a way to reward existing customers, as well as trigger an emotional response to hook potential new customers. These can include “sale” prices, temporary discounts, referral discounts, or “while supplies last” advertising. These time-limited hooks are often enough to pull in many potential leads.

Aggressive Advertising

Aggressive advertising can be used as a much broader marketing brush. By widening the advertising to channels like TV, print, digital billboards, banners, street corner ads, and more, a much bigger target audience can be sought out. Aggressive advertising will often feature similar ads across many different channels.

Simplifying Things For The Buyer

As the overall consumer market continues to bloat with millions and millions of products and services, it is getting exponentially more difficult to capture the attention of buyers. This becomes more important by the day, as attention spans get shorter, and media consumption becomes faster. By making the journey, and subsequently the product choice simpler for the consumer, they are far more likely to take the offering of convenience you are leveraging with your product.

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Increase Usage

This is a technique that is worth its weight in gold, and it is how companies that specialize in software as a service are becoming billion-dollar heavyweights. If your users are logged on and using your service, they aren’t using someone else’s. This can return massive dividends for companies that court enterprise users, which may each have dozens, hundreds, or even thousands of licensed potential users.

Add Features

This is one of the most powerful ways to increase market penetration, but it can also be one of the most costly since it does require honest investment in your company in the hopes of a generous return. If you can add features to an already successful product, without generating any negative press from it, you can add untold value for your customers. Not only is this helpful in customer retention, by demonstrating that you are actively improving your products, but it can also lure in new portions of the market by making the product more appealing in the cost-versus-value sense.

Companies That Utilize More Than Market Penetration to Up-Level Your Business

Market penetration is a hugely popular marketing strategy, and for good reason. It is an incredibly powerful and consistent way to reach new portions of your target audience, and in some cases even widen your target demographic to include people that were previously excluded. But market penetration isn’t the only marketing strategy that you should be using.

By working with an experienced digital marketing firm in the Austin area, you will gain the benefits of not only a comprehensive market penetration strategy but other strategies and methods that are designed to synergize, bringing you marketing results and conversion rates like you have never seen. Don’t trust your brand to just anyone, make sure they have a proven track record of polished projects and delighted clients that hold their brand growth as the ultimate review.

Reach out today if you are ready to take your marketing strategy and, thus, your company growth to the next level.

BY Amanda Stevens