market penetration

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1. The process of entering a market to establish a new brand or product. Market penetration may be achieved by offering the brand or product at a low initial price to familiarize the public with its name. This is known as market-penetration pricing.

2. The extent to which a product or an advertisement has been accepted by, or has registered with, the total number of possible users. It is usually expressed as a percentage. Compare market share.

3. A marketing strategy based on low prices and extensive advertising to increase a product's market share. For penetration strategy to be effective the market will have to be large enough to be able to sustain low profit margins. See product–market strategy.

Subjects: Business and Management.

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