example, looking at a local business called ‘Silverseal Glass and Glazing’ has generally the same marketing strategy as a huge business like Tesco, the marketing strategy involves analyzing the market, determining which product to offer, and the exact range of the customers that this will suit. Generally speaking all companies follow this strategy to succeed.
Market leadership is when a business of the largest market share gets given goods and services, market share is generally measured by the volume of goods that have been sold or even the value of goods that are left. Market leadership normally relates to market share, there are several ways to measure market share. However, the usual methods are by sales revenue and sales volume. An example …show more content…
The activity of increasing overall market share of an existing product or when promoting a new product percentage to a target market that consumes a product or service. Market penetration can also be a measure of one company 's sales as a percentage of all sales for a specific product. A market penetration strategy involves focusing on selling your existing products or services into your existing markets to gain a higher market share. There are many advantages of 'Market Penetration ' the efficiency is encouraged in marketing penetration because of thinner profit margins due to aggressive pricing. This will indicate that efficiency is needed to maintain a suitable profit. Furthermore, another good advantage of 'Market penetration ' is it may discourage competitors from entering the market because overall it would be very hard to compete with someone like Tesco because its overall market share is very large. In addition, if there is a high product turnover due to fast sales this will create enthusiasm for a specific product for the distributors. Although it may seem there are many good advantages with market share, with advantages must come disadvantages. There are many disadvantages in market penetration such as poor company image, lowering industry prices, and missed opportunities. These all occur when customers lose belief in certain products/brands. Tesco will always be able to manage taking customers from other competitors like ASDA, Sainsbury 's etc. They manage to do this by providing the quality products and higher level of services. Tesco will always manage to conquer the market by using advertising and promotions or other marketing strategies. "(Ansoff, 1989, Lynch, 2003). This strategy is important for businesses because retaining existing customers is cheaper than attracting new
Market leadership is when a business of the largest market share gets given goods and services, market share is generally measured by the volume of goods that have been sold or even the value of goods that are left. Market leadership normally relates to market share, there are several ways to measure market share. However, the usual methods are by sales revenue and sales volume. An example …show more content…
The activity of increasing overall market share of an existing product or when promoting a new product percentage to a target market that consumes a product or service. Market penetration can also be a measure of one company 's sales as a percentage of all sales for a specific product. A market penetration strategy involves focusing on selling your existing products or services into your existing markets to gain a higher market share. There are many advantages of 'Market Penetration ' the efficiency is encouraged in marketing penetration because of thinner profit margins due to aggressive pricing. This will indicate that efficiency is needed to maintain a suitable profit. Furthermore, another good advantage of 'Market penetration ' is it may discourage competitors from entering the market because overall it would be very hard to compete with someone like Tesco because its overall market share is very large. In addition, if there is a high product turnover due to fast sales this will create enthusiasm for a specific product for the distributors. Although it may seem there are many good advantages with market share, with advantages must come disadvantages. There are many disadvantages in market penetration such as poor company image, lowering industry prices, and missed opportunities. These all occur when customers lose belief in certain products/brands. Tesco will always be able to manage taking customers from other competitors like ASDA, Sainsbury 's etc. They manage to do this by providing the quality products and higher level of services. Tesco will always manage to conquer the market by using advertising and promotions or other marketing strategies. "(Ansoff, 1989, Lynch, 2003). This strategy is important for businesses because retaining existing customers is cheaper than attracting new