Market penetration refers to the percentage of a target market that uses a specific product or service. It can be measured as a company's sales as a percentage of the total sales for that product category. The document discusses various tactics for increasing market penetration, such as knowing the risks of entering new markets versus focusing on existing markets, creating barriers to entry for competitors, being unique in marketing approaches, diversifying product lines, and forming strategic alliances. It emphasizes using multiple tactics together for the most effective market penetration.

1. MARKETING PENETRATION-2
Market penetration is the exact percentage of the target market that consumes a
specific productor services. Marketpenetration could also be a stellar measureof
the company's sales percentageof all it’s a productit sells. Companies produce
goods and services for a specific population or with a potential market in mind. In
a broad’s point of view, marketpenetration is the measureof individuals in the
target market who consumesomething versus thosewho actually don’t. For
example, if a company determines a productnamed XYZ which has a marketof 50
million people and of those 10 million have already purchaseit, then product
XYZ's market penetration percentage is 20% (1,00,00,000/5,00,00,000 =0.20).
Market penetration could also be represented as the percentage of a company's
sales versus the total sales for a specific product. For example, if all companies
that produce products similar in nature to XYZ, which have total sales of 5 crores,
and company ABC's sales are equal to 1.5 crores, then company XYZ's market
penetration would be 30% (1.5 crores /5 crores = 0.30). In this series of articles
we will tell you everything you need to know on marketpenetration, and since
this a very vasttopic there will be 3 articles on this.

2. Here are a few marketpenetration tactics that would be useful, (please to click
here to go to the previous article has more tactics which would help you):
6.Knowing Risk and Growth
Most marketers whenever they think of growth always think launching a new
productis the bestway for it. it is true, a new product will help you hike your
growth, but this is not always true. Actually, it can be equally risky as well. When a
new productis being launched in the market, there is an omnipresent risk of
failing because nothing new is welcomed into this world with open arms.
Especially new products. But, setting up an efficient distribution channel along
with a smooth delivery process makes it certain that the productdoes meet
buyers. Oneof the biggest difficulty of a productnot able to meet the people is
because it doesn’t meet the people efficient. Making good supply chains and
easily accessiblefor the people will automatically help your yield rate. Similarly,
entering a brand-new segment of the market could be risky as well. Therefore, it
is absolutely essential to know your marketand your productin order to do well
and exceed beyond expectations. An effective way to do this is to properly
communicate with the customers and be sensitive to their requirements and
wants.
7.Create barriers toentry
When it comes to adopting strategic options, it is crucial to leverage your
business’s strengths in a correct and justmanner. For example, by minimizing
your variable costs, you can boost your sales and establish a barrier to entry for
others. This is why many firms with superior technology and distinct processes are
able to reduce variablecosts and earn better gross margins per item sold. With a
substantialsharein the market and an efficient marketing process, your business
could create a barrier to entry to preventcompetitors fromcoming into your
industry.
8.Be unique and think differently
Although, the entire process of marketpenetration seems simple and
monotonous, yetit’s a big challenge if you perceive it to be. To overcomethe
challenge, you need to be more unique and highly innovative in your approach. A
repetitive selling strategy would yield unsatisfactory results and hinder your

3. growth potential. So, it would be better to think different and modify your
penetration tactics as and when required. By being more innovative and adding
value to your products you enhance your success chances.
Some actions you could consider to be unique in your respectivemarket:
Educate your customers – This is importantas many times people are unawareof
the quality of the productand how it could be of use to them.
Make purchasing easier – Many successfulbusinesseslend a credit facility to their
customers and thus increasethe customers’ ability to buy.
Widen the distribution network – Making your productavailable at as many
locations as possibleand optimizing it’s delivery standards and serviceoptions
could also significantly boostyour sales figures.
Generate referrals – If you can encourage your customers to give referrals, it
would certainly affect your chances of sales. For example, you can offer gift
coupons or reward points to thosecustomers whosereferrals do actually get
converted.
Changing product designs – Making the productmore user-friendly boosts your
chances of sales conversion significantly. For example, you could makea lengthy
novel a paperback one instead of a hard bound one.
9.Diversification
The product penetration tactic of diversification entails manufacturing new
products for new markets. The strategy of diversification is usually followed
whenever, there is saturation in the currentmarket or when environmental
changes such as societal, economic, technological or regulatory make it very hard
to generate new sales in those markets. This strategy is most commonly followed
by those businesses in the health sector, such as hospitals. Hospitals havenow
diversified their services in the formof long-term care facilities, reimbursement,
network referrals, and utilization. Those firms that have diversified on
opportunities of their strengths havebeen able to gain the most.
10. Strategic Alliances

4. For some organizations, itis difficult due to one or more reasons to enter new
markets. To solvesuch an issue, many of these organizations enter into a kind of
strategic alliances with one another to operate in a particular market. Although
strategic alliances can be formed into many forms, the more common one is the
joint venture business, in which each partner business holds an equity position.
The most common and natural strategic alliances are found in the pharmaceutical
industry.
In this article and the previous article we havegiven all the tactics you need to
efficiently penetrate the market. we’vetried to showcaseseveralmarket
penetration strategies. However, such tactics will be applicable best when you
make useof multiple ones together. The increase in reach of your productshould
be accompanied by a subsequentincreasein your promotions. After increasing
the promotion, you are bound to grow the productusageand on the other hand,
attract competition fromyour rivals.(To check out the previous article on market
penetration click here)