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Market penetration, sometimes referred to as a market share, is a measure of the percentage of sales mass an existing product or business achieves in relation to the competition. A product that earns $25 out of all $100 of sales of all product sales in its category has a 25 percent entering rate, or share. To increase market penetration, a business can utilize a number of strategies in an effort to occupy sales from its competitors.
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Difference Between Product Development and Market Development | Product Development vs Market Development
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The key conflict between product exploitation and market development is that product development is a strategy that focuses on development new products in existing markets whereas market utilisation strategy identifies and develops new market segments for existing products. Summary Product development is a strategy in which businesses develop new products or product categories and market them in existing markets, i.e. This type of plan of action can be implemented successfully by reputed companies that have an established brand name since customers are, generally, not irresolute to purchase products from well-known brands. Product development and market development are two quadrants in the Ansoff’s growth cast that demonstrates iv mode in which a company can expand and grow. Igor Ansoff in 1957 and is in broad use by a number of firms. Further, by giving much purchase options to customers, the company can limit them from purchasing competitor products. The other two quadrants in the growth body substance are market penetration and diversification. Product usage involves significant research and development costs since the need to introduce innovative and unique products to capture the customers. The Coca-Cola band heavily invest in research and development and soul introduced a number of new soft drinks with different flavors such as Coca-Cola Vanilla and Fanta icy lemon.
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