What is the definition of market penetration?

Market penetration is defined as a growth strategy aimed at increasing sales of existing products in existing markets. This approach focuses on capturing a larger share of the existing market by promoting products more effectively, enhancing distribution channels, or engaging in competitive pricing. By prioritizing current products and markets, companies can maximize revenue from their existing customer base, optimize resource allocation, and leverage existing brand recognition.

This strategy is central to many businesses looking to grow without the immediate expense or risk associated with developing new products or expanding into new markets, as evidenced by its emphasis on maximizing current assets and capabilities. As a result, companies may employ tactics such as promotions, pricing adjustments, or increasing advertising efforts to increase their market penetration effectively.

The other choices describe different strategies or aspects of marketing that do not align with the definition of market penetration. For instance, entering new international markets involves a different approach focused on globalization rather than reinforcing dominance in an existing market.