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Intensive Strategies Are Those Strategies, Which Demand Furthermore Intensive Efforts To Improve The Performance of Existing Products in The Market

Market penetration strategy aims to increase market share by making existing products more effective and attractive through increasing salespeople, advertising, promotions, and publicity. Examples include Netflix, Gillette, Surf Excel, and Lifebuoy. The strategy can quickly diffuse products and create goodwill but risks initial losses and price wars. Techniques include price reductions, increasing marketing efforts, strong distribution networks, and research departments.

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60 views

Intensive Strategies Are Those Strategies, Which Demand Furthermore Intensive Efforts To Improve The Performance of Existing Products in The Market

Market penetration strategy aims to increase market share by making existing products more effective and attractive through increasing salespeople, advertising, promotions, and publicity. Examples include Netflix, Gillette, Surf Excel, and Lifebuoy. The strategy can quickly diffuse products and create goodwill but risks initial losses and price wars. Techniques include price reductions, increasing marketing efforts, strong distribution networks, and research departments.

Uploaded by

hooriya naseem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Slide 1

Intensive strategy

Intensive strategies are those strategies, which demand furthermore intensive efforts to
improve the performance of existing products in the market.

Slide 2

Purpose of Intensive strategy

The aim of intensive strategy is to broaden the market share and to increase the profit by making
the existing products more effective and by introducing new and various set of products in order to
increase the market share too

Slide 3

Types of intensive strategy

Slide 4

Market penetration

Deals with enhancing the share of market by effective and innovative strategies in order to make
present product more effective and attractive

Market penetration includes increasing the number of salespersons, increasing advertising


expenditures, offering extensive sales promotion items, or increasing publicity efforts.

Slide 5

Guidelines for market penetration


1. Current markets are not saturated with a particular product or service.

2. The usage rate of present customers could be increased significantly.

3. The market shares of major competitors have been declining while total industry sales
have been increasing.

4. The correlation between dollar sales and dollar marketing expenditures historically has
been high. 5. Increased economies of scale provide major competitive advantages .

Slide 6

Examples

 Netflix
 Gillette
 Surf excel
 Lifebuoy
 Walls

Slide 7

Advantages of market penetration

 It may cause quick diffusion and adoption of your product in the market. If your
product is cheap enough and of similar quality to competing products, it should spread
out into the market and be purchased by customers quickly.
 It may create goodwill among the first customers that purchase the product due to the
aggressive pricing. This may create customer referrals.
 Efficiency is encouraged because of thinner profit margins due to the aggressive
pricing. Efficiency will be needed to maintain profitability.
 It may discourage competitors from entering the market.
 If there is high product turnover for a distributor due to fast sales, it may help create
enthusiasm for your product from the distributors of the product, such as retailers.

Slide 8

Disadvantages

1. Every company has to ensure that there will be initial losses which
have to be taken care of by the company itself. This is truly special in
case of companies which are focused on creating brand value in the
market before launching the product full-fledged.
2. It is very difficult for other companies to survive in case of price
penetration wherein the new entrant is price rate a very low cost as
compared to the existing competitors
3. The customer is happier in case of price penetration because he gets
a better product at a lower price; it is difficult for other companies to
sustain with such low margins or meager amounts of profit. This starts
a price war and toughens up the competition

Slide 9

Techniques of market penetration

Price penetration

Increasing market efforts

Having a strong distribution network

Strong research department

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