Market Penetration and Market Development

Having introduced the Ansoff Matrix, this lesson examines the first two growth strategies in greater depth: market penetration and market development. Both strategies involve selling existing products, but they differ fundamentally in whether the business stays within its current market or ventures into new ones. A-Level Business examiners expect you to understand the conditions under which each strategy is appropriate, the methods used, and the risks involved.

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Market Penetration in Depth

Market penetration is the strategy of increasing market share within an existing market using existing products. It is the least risky of the four Ansoff strategies because the business is working with familiar products, customers, and competitive conditions.

Methods of Market Penetration