Market Penetration Is One Strategy That Many Term Paper

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Market penetration is one strategy that many businesses consider when they decide to expand their business operation to other regions but within the same market. Market penetration usually involves the establishment of business relationship to other region. With market penetration, businesses will be able to measure their success. For instance, the measure of percentage of sales in different region is one way to determine where a company is harvesting success and where it needs improvement in terms of operation and provision of services.

An example of a company that successfully gains from market penetration is FSI International, Inc., a supplier of surface conditioning equipment and technology for microelectronics manufacturing (FSI-International.COM). Since FSI decided to penetrate the Asian market with direct sales and support, they found a considerable growth in revenue. According to Electronic News Online, 40% of FSI's current sales in 2004 were from Asian customers. This is equivalent to an increase of 29% of Asian customers as compared to last year that only comprises 11% of all sales. Don Mitchell, FSI's CEO and President, describes their strategy of penetrating the Asian Market with direct sales, states that (Electronic News, 2004)

"By providing a full portfolio of support services directly in Asia, we're developing stronger customer relationships.

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As a result, our customers are now showing great interest in expanding beyond their use of FSI traditional spray cleaning technologies to include new back-end-of-line and wafer bumping applications for spray as well as employing our advanced immersion and CryoKinetic technologies,"

Market Development

Marketing Essentials Online define marketing development as

The process of finding new markets for products a company is already making.

Marketing development is almost similar to market penetration in that both aims to expand a business. The only difference is that market development may involve a process of entering a new venture or market segment for an existing product, while market penetration is a business strategy where a company focuses on the same market but on an expansion to a new region or location.

An instance of a business where market development has been a success is the joint venture of Sony and Ericsson companies. The merging of these two companies, now known as Sony Ericsson, provided them with the opportunity of extending their products into a new market segment -- with Sony entering the mobile cellular phone market segment,….....

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