What is meant by "market penetration"?

Market penetration refers to a strategy focused on increasing a company's market share within an existing market for its current products or services. This method typically involves tactics aimed at encouraging more customers to buy the company's products or using existing customers to increase their purchasing frequency or volume.

For instance, businesses might lower prices, enhance marketing efforts, offer promotions, or improve product features to attract more consumers and gain a larger share of the market. The primary aim of market penetration is to maximize sales and enhance the company's position without necessitating the introduction of new products or entering new markets.