A marketing strategy that aims to increase market share by selling more to existing customers is called

• A. Market penetration
• B. Product development
• C. Diversification
• D. Price skimming

Answer: (A)

Market penetration is about growing sales within the existing customer base to capture a larger share of the current market. The idea is to get more value from customers you already have—through encouraging more frequent purchases, increasing how much they buy, or boosting usage—often with promotions, loyalty programs, or better availability. The goal is not to develop new products or reach new markets, but to deepen relationships and increase purchases among current customers.

This differs from product development, which focuses on new or improved products for either current or new customers; diversification, which means entering new markets with new products; and price skimming, a pricing tactic aimed at maximizing margins on new products rather than expanding share with existing customers.