Market penetration
Market penetration seeks more business from existing products in existing markets, for example by increasing usage, winning customers from competitors or improving retention. It is one of Ansoff’s product-market options. Existing does not mean low risk: price responses, capacity, competition and customer economics still matter. Define the market and product boundary before classifying a proposal.
Worked example
An established repair service increases repeat bookings from current customer segments through better reliability and targeted communication.
Common mistake
Do not classify every revenue increase as penetration if it actually requires a new product or a meaningfully new market.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Supporting | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |