What does 'market penetration' involve?

Market penetration refers to the strategy of increasing sales of existing products within existing markets. This approach focuses on enhancing the market share of a company by maximizing sales to current customers or attracting customers from competitors. Tactics used in market penetration often include aggressive pricing strategies, improved promotional efforts, and enhancing customer loyalty through better service or product improvements.

Increasing sales of existing products in existing markets indicates that the business is not looking to expand into new geographical areas, customer demographics, or new product lines; instead, it is concentrating on deepening its foothold where it already operates. This can be especially effective in markets where there is already a strong customer base and a possibility for growth through expanded usage or increased customer loyalty.

The other options involve strategies that either target new customer segments or introduce new products, which do not fall under the definition of market penetration.