Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service.
Market penetration can also be used in developing strategies employed to increase the market share of a particular product or service.
What is international market example
International Marketing Examples: Nokia – Dust resistant phone, anti slip grip and in-built flash light for India rural consumer.
Hindustan Unilever – Introduced shampoo sachets priced at Re 1 for price sensitive Indian consumer.
MTV – Localised programming help to gain wider audience.
What is international market strategy
International marketing can be defined as the tactics and methods used to market products and services in multiple countries.
This could be in the form of import/export, franchising, licensing, and online sales.
What is market penetration and its strategy
Market Penetration Strategy. A market penetration strategy is when a company works towards a higher market share by tapping into existing products in existing markets.
It’s how a company (that already exists in the market with a product) can grow business by increasing sales among people already in the market.
What are the types of international market
Types of international marketing include export, licensing, franchising, joint venture, and foreign direct investment.
Global marketing aims to satisfy the needs of global customers.
What is the importance of market penetration
Market penetration is important to both established companies and startups trying to cultivate a customer base.
A market penetration strategy that combines thoughtful product development, a clear pricing strategy, and clever marketing campaigns can help a company increase its market share.
What is market penetration example
For example, assume 500 million people live in a country, and 100 million of them own an iPhone.
So, the market penetration for iPhones would be 20%. Theoretically, 400 million people or the remaining 80% of the population remains for the taking.
What is the purpose of market penetration
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.
What company uses market penetration
Market penetration: focus on current products and current markets in order to increase market share.
Market penetration requires strong execution in pricing, promotion, and distribution in order to grow market share.
Under Armour is a good example of a company that has demonstrated successful market penetration.
What are the objectives of market penetration
Market penetration is a set of activities pursued by companies to increase the market share of a product.
Market penetration is the art and science of increasing sales of existing products/solutions/services without changing them.
Usually, it is applied to merchandise that is selling in a specific geography.
How do you plan to penetrate international marketing?
- Review your company
- Develop a market entry strategy
- Prepare and execute an export marketing plan
What are the advantages and disadvantages of international market
Competing in international markets involves important opportunities and daunting threats. The opportunities include access to new customers, lowering costs, and diversification of business risk.
The threats include political risk, economic risk, and cultural risk.
What is good market penetration
An above average market penetration rate for consumer goods is estimated to be between 2% and 6%.
A good penetration rate for business products is between 10% and 40%. Some brands calculate market penetration every quarter while others find it useful to do so after each ad and marketing campaign.
How do you conduct market penetration?
- Lowering or raising prices
- Acquiring a competitor in your market
- Revamping your digital marketing roadmap to increase brand awareness
- Modifying your products or to specifically solve your customer’s problems
- Developing new products to attract new customers
What is an example of market penetration
For example, if there are 300 million people in a country and 65 million of them own cell phones, the market penetration of cell phones would be approximately 22%.
In theory, there are still 235 million more potential customers for cell phones, or 78% of the population remains untapped.
What are the three approaches to entering an international market?
- By exporting the goods or services,
- By making a direct investment in the foreign country,
- By partnering with local companies, or
- Reverse Internationalization
What is a market penetration strategy quizlet
Market Penetration Strategy. A plan for increasing the number of customers and sales by getting more of the people in your target market to buy your products and services.
What is a market penetration strategy
A market penetration strategy is when a company works towards a higher market share by tapping into existing products in existing markets.
It’s how a company (that already exists in the market with a product) can grow business by increasing sales among people already in the market.
What is international marketing in simple words
In simple words, international marketing is trading of goods and services among different countries.
The procedure of planning and executing the rates, promotion and distribution of products and services is the same worldwide.
What is the main objective of international marketing
To enhance free trade at global level and attempt to bring all the countries together for the purpose of trading.
To increase globalization by integrating the economies of different countries. To achieve world peace by building trade relations among different nations.
What are the characteristics of international marketing?
- Broader market is available
- Involves at least two set of uncontrollable variables
- Requires broader competence
- Competition is intense
- Involves high risk and challenges
- Large-scale operation
- Domination of multinationals and developed countries
- International restrictions
Why is international marketing important
International marketing makes social & cultural exchange possible between different countries of the world.
Along with the goods, the current trends and fashion followed in one nation pass to another, thereby developing cultural relation among nations.
Thus, cultural integration is achieved at global level.
What is the market penetration rate based on potential customers
Divide the number of actual customers by the total number of potential customers to find the rate of market penetration.
For example, if the television has 190 million customers, divide 190 million by 200 million to get a rate of 0.95 customers per potential customer.
What is price penetration in marketing
an approach to pricing in which a manufacturer sets a relatively low price for a product in the introductory stage of its life cycle with the intention of building market share.
What is the advantage of market penetration strategy
Market penetration strategy takes advantage of low prices to increase product demand and increase market share.
While the demand is increasing, the organization saves money on product creation costs due to the greater volume of production.
How can market penetration be improved
Ways to increase market penetration Adjusting (increasing or dropping) pricing to appeal to new audiences.
Channeling further investment into marketing and advertising efforts. Updating your product so that is better addresses customer concerns or roadblocks, and/or improving its functionality.
What is the difference between market development and market penetration
Market Penetration – The concept of increasing sales of existing products into an existing market.
Market Development – Focuses on selling existing products into new markets. Product Development – Focuses on introducing new products to an existing market.
What are the challenges of international marketing?
- Engagement differs across markets
- Aligning efforts need effective coordination
- Small teams can struggle to be heard and win resources
- Technology can help
What are the 4 factors affecting international marketing
These factors include cultural and social influences, legal issues, demographics, and political conditions, as well as changes in the natural environment and technology.
What are the risks associated with market penetration?
- Unmet Production Costs
- Missed Opportunities
- Poor Company Image
- Lowering Industry Prices
- Lack of Results
- Saturated Market
What are the types of international marketing?
- Export
- Licensing
- Franchising
- Joint ventures
- Foreign direct investment (FID)
References
https://www.investopedia.com/terms/p/penetration-pricing.asp
https://learn.marsdd.com/article/how-to-estimate-market-size-business-and-marketing-planning-for-startups/
https://www.investopedia.com/terms/p/priceskimming.asp
https://contensis.uwaterloo.ca/sites/courses-archive/1191/ECON-344-ARBUS-302/lecture-content/module-1/week-2-3.aspx
