Do you ever think that how businessmen can reach their products to the maximum customers whom they consider as their king?
We all are familiar that how they do the same, you all must have heard about the cycle to send the products to the customers, which goes like this:
So, this is how it actually works. Manufacture is the person who starts the cycle and the cycle ends with the final person that is consumer, and sometimes these distributors use agents as well, which is the new concept came after this which has been already shown above. Also, this cycle has its own advantage, like:
The products and services can be delivered in the timely manner as well as in the large quantity; because we already know that the wholesaler is the one purchase from the manufactures in bulk quantity.
Also, the products and services which the manufacturer is offering can also reach to the different geographical areas in the wider scope.
And, as we know every person engaged here is always look to minimize their costs, so with the help of this cycle the cost of the transportation can be minimized which cannot be possible in case if the buyer is purchasing it from the manufacturer itself.
WHAT ACTUALLY THE ‘MARKET PENETRATION’ IS?
MARKET PENETRATION is actually a strategy which focuses on to sell the products, so as to increase the market share of the company. But what actually it is other than this theoretical concept,
so let’s make it clearer and examples are one of the best ways.
HOW IT WORKS?
SUPPOSE, If a company say, PATANJALI determines that their product DANT KANTI’ has a market of 80 Million people and out of those let’s say 40 million people are purchasing it, the according to you what can be the market penetration?
It would be (40,000,000/ 80,000,000= 50%), so we can say that Market penetration measures the individuals who are buying the product vs. who are not buying, so by considering both these categories, company is deciding about how much it should produce by keeping in mind the population which is there in the market.
WHAT CAN WE CONCLUDE FROM THIS WHOLE ARTICLE?
And now what I as the writer of this article can easily conclude that WHOLESALERS & DISTRIBUTORS are working in this cycle, so that the ease of doing business can be possible or so that it can cover the large area as well. And what a business can get from this is he can easily focus on to make their business to the new heights and can maximize their sales and profits by focussing on the customer needs, which is the ultimate aim of ‘MARKET PENETRATION’.
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