Which of the following best defines market penetration?

Which of the following best defines market penetration?

• A. Increasing sales of existing products to new customers
• B. Attracting new customers with new products
• C. Increasing market share within existing customer base
• D. Expanding into new geographical markets

Answer: (C)

Market penetration refers to the strategy of increasing market share by selling more existing products to an existing customer base. This involves enhancing the product's visibility or attractiveness to encourage current customers to buy more, often through various marketing strategies, promotions, or improved services. By focusing on the existing customers, businesses can consolidate their place in the market and utilize customer loyalty to boost sales. The other options presented describe different strategic approaches. Attracting new customers with new products revolves around market development, where the company aims to reach untapped segments. Expanding into new geographical markets highlights market expansion strategies, rather than focusing solely on the existing market with current products. Lastly, increasing sales of existing products to new customers signifies a market development approach instead of penetrating the existing market. Therefore, focusing on existing customers to increase sales aligns perfectly with the definition of market penetration.

Market penetration refers to the strategy of increasing market share by selling more existing products to an existing customer base. This involves enhancing the product's visibility or attractiveness to encourage current customers to buy more, often through various marketing strategies, promotions, or improved services. By focusing on the existing customers, businesses can consolidate their place in the market and utilize customer loyalty to boost sales.

The other options presented describe different strategic approaches. Attracting new customers with new products revolves around market development, where the company aims to reach untapped segments. Expanding into new geographical markets highlights market expansion strategies, rather than focusing solely on the existing market with current products. Lastly, increasing sales of existing products to new customers signifies a market development approach instead of penetrating the existing market. Therefore, focusing on existing customers to increase sales aligns perfectly with the definition of market penetration.