Assess the advantages of market penetration

Market penetration is the process on ansoffs matrix where the business sells existing products to existing consumers by offering loyalty schemes and trying to encourage repeat purchases. This will lead to an increase in sales and should lead to an increase market share as a result of market penetration. However, this is a low risk low reward option of growth as a business may not manage to increase sales that significantly and so the increase in market share could be minimal.

DO
Answered by David O. Business Studies tutor

2698 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

How do you work out breakeven?


Assess the consequences to a business, such as spirit airlines of selling tickets online


Analyse how delayering might affect the level of profit a business generates.


What’s the difference between the two main liquidity ratios?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning