Assess the advantages of market penetration

Market penetration is the process on ansoffs matrix where the business sells existing products to existing consumers by offering loyalty schemes and trying to encourage repeat purchases. This will lead to an increase in sales and should lead to an increase market share as a result of market penetration. However, this is a low risk low reward option of growth as a business may not manage to increase sales that significantly and so the increase in market share could be minimal.

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Answered by David O. Business Studies tutor

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