IGCSE Business Studies Practice Exam 2025 - Free Business Studies Questions and Study Guide

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What is the strategy of market penetration primarily focused on?

Developing new products for new markets

Increasing market share of existing products

The strategy of market penetration is primarily focused on increasing the market share of existing products within an established market. This approach aims to boost sales of current offerings by encouraging existing customers to buy more or attracting new customers from competitors.

The emphasis on existing products means that a business will look for ways to deepen its market presence—this could involve tactics such as increased promotional efforts, adjustments in pricing strategies, or enhancing distribution channels. The goal is to leverage the current product appeal and maximize its sales without the complexities and risks associated with developing new products or entering new markets.

This strategy is often seen as less risky compared to product development or market expansion, as it builds upon existing strengths and customer bases.

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Reducing prices of all products

Enhancing customer service practices

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