What, why, and how of aggressive market penetration


Marketing is the foundation of any business, whether promoting a product, increasing sales, increasing market share, creating a strong brand presence, or boosting revenue.

Amidst all the hassle of meeting the latest market trends, you come across different marketing terms, aggressive market penetration being the most prominent. 

Despite the nature and scale of your business, it is important to understand how your product or service is performing in the current market. There must be a marketing strategy to place your service in the current market. 

Speaking of marketing strategy, also known as a marketing plan, aggressive market penetration is one low-risk growth measure and a strategy to be a market leader. 

Hence, let's have a look at marketing penetration through a perspective that helps businesses in either introducing a new product effectively or performing better with their existing product or service. 

What is aggressive market penetration? 

In the context of business, "aggressive market penetration" refers to the strategy of entering a new market or expanding into a new product or service to acquire a major portion of that market share or increase sales. 

Though market penetration strategies are not limited to just a new product or service, you can implement aggressive market penetration to your existing products. 

The purpose of penetrating the market aggressively is to rapidly develop a significant presence in the market and to advance to the position of dominating player.

Market penetration example

Suppose you want to introduce a new customer relationship management (CRM) software in the market- but there are already a few strong, well-performing, highly competitive products that people trust and widely used. 

What difference would you bring in people's lives with your product while hoping to quickly gain a significant market share and establish itself as a major player in the industry?

These are some market penetration options:

  • Offering promotions or discounts.
  • Engage in partnerships and collaborations.
  • Free trials with premium benefits.

These three options are just some ways you can grab the attention of your target audience. Along with other techniques, you can also increase market share for your product and service, when you use and involve in the right market penetration strategies. 

Also, to create an effective market penetration strategy, it is also important to know where your competitors are standing or what approach you need to use so that you can establish a market penetration strategy.

Here comes the good part!

Depending on the context, you can use aggressive market penetration as a measure to evaluate numbers which leads you to create a penetration plan. 

Market penetration: measure vs activity

It is in the name, where market penetration refers to the extent to which a company's product or service is adopted by customers in a total estimated market, the percentage measure of total potential customers in a market that has adopted the product or service is known as market penetration as a measure.

Market penetration as a measure

We are here at the point where you want to measure product adoption in comparison to theoretical market trends and product placement. 

To put it into numbers, the formula you can use to calculate market penetration is:

Market penetration rate = (number of customers ÷ target market size)

Example of market penetration as a measure

A customer relationship management system (CRM) is a common product in this digital age. There is a substantial amount of market potential for it. Let's just say that the audience size you are going for is 300 million people.

Then, let us suppose that out of the 300 million prospective users, 10 million already make use of CRM for either their personal or professional needs.

The ratio of the number of individuals who utilize (in this case, 10 million) to the total number of persons in the target group is the formula for market penetration (300 million). Your customer relationship management (CRM) system has a market penetration of 10%, as represented by a percentage.

Knowing your current market penetration rate, you can better enter a new market or expand into a new product line to quickly gain a large market share. 

Market penetration as an activity

Here comes another market penetration strategy, called a plan or activity. Market penetration as an activity is the process of looking to quickly establish yourself in a new market or outcompete your competitors, boosting market share, and increasing or achieving high sales volume. 

It involves various tactics that you can choose depending on your budget, marketplace, business, or product. 

Before looking into the risks, let's look at a few aggressive market penetration strategies to achieve your goals.

Types of aggressive market penetration strategies 

There are several types of aggressive market penetration strategies you can leverage. Here are some examples:

Price-based aggression

This involves offering products or services at significantly lower prices than competitors. It will help you faster when it comes to attracting customers and also gaining market share. This is very effective for your business if you have low production costs and for those of you who are looking to disrupt a market with competitive pricing. However, it can also lead to price wars with competitors and potentially lower profits.

Promotional aggression 

This involves heavily promoting products or services through advertising, discounts, and other marketing efforts to attract customers and gain market shares. If you have strong brand recognition or want to differentiate yourself from competitors, this is a very useful and effective technique. However, it can also be costly and may not always result in sustained market share gains.

Distribution aggression 

This involves expanding the distribution of products or services to new markets or channels to gain market share. This can be effective for businesses with strong distribution networks or those looking to reach new customers. However, it can also be costly and may require significant investments in logistics and distribution infrastructure.

Product aggression 

This involves introducing new products or significantly improving existing markets and products to gain existing market share. This can be effective for businesses with strong research and market development capabilities or those looking to differentiate themselves from competitors. However, it can also be risky and may require significant investments in product development and marketing.

Benefits of an aggressive market penetration strategy

Aggressive market penetration can be a powerful business strategy for start-ups and businesses. Here are some of the benefits of using aggressive market penetration for your business:

Quickly establish a strong market position

By aggressively entering a new or existing market or expanding into a new product or service offering, a SaaS company can quickly gain a significant market share and become a dominant player. This can help the company establish a strong brand and reputation, which can lead to increased customer loyalty and higher profits.

Capture a large portion of the market

By being the first to enter a new market or offering a new product or service, you can establish yourself as the leader and set the standard for the market. This can make it difficult for competitors to enter the market and gain a foothold, as the company has already established itself as the dominant player.

Generate additional revenue streams

By expanding into new markets or offering new products or services, you can generate additional revenue streams and diversify your income. This can help your company weather economic downturns and ensure long-term stability.

Attract top talent

If your company is aggressively expanding and entering new markets, it will help your company attract and retain the best employees, which can lead to increased productivity, success, and market development.

Marketing campaigns for market visibility

By engaging in extensive advertising and marketing campaigns, you can increase your business visibility in the market and build brand awareness. That in turn, help your company reach a wider audience and attract more customers.

However, it also carries risks, as it often involves significant investments in marketing and sales efforts, and can lead to intense competition with other companies.

Risks involved in aggressive market penetration strategies

While a market penetration strategy can be effective for your business looking to quickly establish itself in a new market or outcompete your competitors, it also carries risks. Here are some common risks involved in aggressive market penetration and ways businesses can minimize them:


One of the main risks of high market penetration is intense competition from other companies. This can lead to price wars, which can drive down profits, or a crowded market where it is difficult to stand out. To minimize this risk, businesses can focus on niche markets or segments where there is less competition, or differentiate their products or services to stand out.


Another risk of high market penetration is the cost of marketing and sales efforts, which can be significant. This can be especially challenging for start-ups or businesses with limited resources. To minimize this risk, businesses can focus on cost-effective marketing strategies, such as social media marketing or content marketing, and use partnerships and collaborations to access new markets more efficiently.

Market demand

Another risk of aggressive market penetration is the possibility that there may not be sufficient demand for the business's products or services in the target market. To minimize this risk, businesses can conduct market research and assess the potential demand for their products or services before entering the market. They can also consider customer segmentation and target specific customer segments that are more likely to be receptive to their offerings.

Product-market fit 

Finally, a risk of an aggressive market penetration strategy is the possibility that the business's products or services may not be well-suited to the target or total estimated market. To minimize this risk, businesses can conduct market research and gather customer feedback to ensure that their products or services are meeting the needs and preferences of their target audience.

What factors affect market penetration strategy?

Whereas market penetration is to place your product in the market amongst customers, numerous factors affect the market penetration process or strategy, including:

  • Unique or better product features and advantages make customers more inclined to accept a product or service.
  • The price might affect market penetration. A high price may inhibit adoption, whereas a cheap price may boost it.
  • Competition affects market penetration. If multiple rivals provide identical products or services, a new product may struggle to achieve traction.
  • Marketing and advertising may enhance product or service recognition and uptake.
  • Distribution routes can affect market penetration. A product with few distribution channels may be less popular with clients.
  • A successful product or service must match the client's wants and preferences.
  • If a firm has loyal clients, it may be simpler to launch new products or services since they trust the brand.

Is market penetration strategy aggressively increasing prices?

No, market penetration isn't tied to price strategy. Market penetration is the amount to which a product or service is used by customers in a given market. Marketing efforts, product quality, and rivalry can all impact market penetration strategy.

Penetration pricing strategy refers to a company's method of establishing product prices that help in quickly obtaining the market share; whether high or low. However, you can also set premium pricing for the goods that are high in quality, and do price skimming. Price skimming is charging a high price and gradually lowering it as the product becomes more widely available.

You can utilize a market penetration plan and an aggressive pricing approach without the two being related.


Overall, aggressive market penetration can be a powerful strategy for businesses looking to quickly establish themselves in a new market or expand their product offerings. However, it requires careful planning and consideration of potential risks and costs. Businesses must also be prepared to adapt their strategies as market conditions change and competition intensifies.

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