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.

DO
Answered by David O. Business Studies tutor

2649 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

To what extent is online retailing essential to a firm’s success?


Asses the likely impact on a domestic firm of a global merger with a bigger MNC (Multi-national corporation) 10marks


What is the most effective way to answer an essay question in the exam?


What are Porter's 5 forces and how they help the business?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning