Discount penetration pricing is a strategy designed to keep prices low to shut out potential competition. When used in an existing market, it creates a price war. The strategy can be very effective for companies that do their market research carefully and know that they have the resources to make it work.

Market penetration refers to the successful selling of a product or service in a specific market. It is measured by the amount of sales volume of an existing good or service compared to the total target market for that product or service.

The objective behind the strategy of market penetration is to launch a product, enter the market as swiftly as possible and capture a sizeable market share.

Market penetration is a measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service. In addition, market penetration can also include the activities that are used to increase the market share of a particular product or

Traditionally we talk about four main ways that a company can can increase the sales of a current brand using a market penetration strategy, i.e., selling a current product in a current market.

Before you establish a pricing strategy, understand the concepts behind ideas like neutral, penetration, skimming and value-based pricing.

1. The activity or fact of increasing the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or …

This statistic depicts the projected market penetration of autonomous vehicles in the United Kingdom from 2015 to 2030, by level of automation. It is predicted that connected cars will reach 55 percent market penetration in 2016.

Usually performed by startups and early-stage businesses, market penetration is the first step toward business growth; learn more with this guide.

While entering a new market, it’s important to use the market penetration strategy. Why? Because the strategy has the potential to be a “game changer”.