What is meant by "market penetration"?

"Market penetration" refers to a strategy aimed at increasing sales of existing products within current markets. It focuses on maximizing the presence and sales volume of products that are already familiar to consumers. When a business employs market penetration strategies, they often seek to enhance their market share and engage in tactics such as promotional activities, price adjustments, or improved marketing efforts to attract more customers from their existing demographic.

This concept is crucial for businesses aiming to solidify their position and outperform competitors without the complexities involved in developing new products or entering new markets. It represents a growth strategy that is generally less risky since it capitalizes on existing customer bases and established products, thereby minimizing uncertainties.

The other options refer to different strategies that involve varied levels of risk and resource allocation, such as launching new products or competing on price, which fall outside the definition of market penetration.