Thursday 13 December 2018

Difference between market penetration and development

Market Development

Strategy whereby an organization introduces its offerings to markets other than those it is currently serving

Illustration: Sage Pay enters German market

Sage Pay is the UK and Ireland’s leading independent payment service provider (PSP) and is one of the most trusted payment brands. Every year Sage Pay processes billions of pounds’ worth of secure payments for its 45,000 customers and makes the process of accepting payments online, over the phone, or in person simpler, faster, safer and more profitable for businesses of all sizes.

Recently Sage Pay decided to enter into German market to benefit customers from easy integration and transparent pricing, and as an Opportunity for UK businesses to expand their customer base into Europe
Sage Pay, the UK’s leading payment provider has been launched in the German market dated 18 October 2012 providing online payment solutions for small to medium sized (SMB) online businesses.

If we check the customer base of Sage Pay it is over 45,000 customers in the UK & Ireland and the move into the German market is an example of Market Development as the product is same, but being introduced in new market.

To further elaborate about the company and its working style, Since Sage Pay’s beginnings 11 years ago many of their customers have grown from bedroom start-ups to multi-million pound enterprises. In addition to providing payment technology Sage Pay also advise customers on the latest e-commerce trends and innovations to ensure they remain competitive.


According to the data provided by Company, In the UK Sage Pay has a business relationship with over 2,600 partners including digital agencies, web developers, hosting and shopping cart providers. Many partners are already Pan-European and have expressed interest in continuing the partnership in the German market. This gives a positive signal in Market Development.

Overall it seems an accurate strategy to enter German market for Company growth on the theory of Market development. Sage Pay with its long serving experience in business and good repute along with having customers and partners on its side give a competitive advantage. I believe Sage Pay stakeholders will surely be advantaged.

Market Penetration

It is a strategy to increase market share of a product or service in an existing market.

Illustration: eBay Mobile Strategy

eBay Inc. the world’s largest online marketplace rose the most in three months after third- quarter results fueling optimism. That the company’s turnaround is gathering steam. Third-quarter revenue climbed 15 percent to $3.4 billion, as per Company statement.

Reason behind the raise in the revenue is believe to be focus mobile technology. Marketing campaigns and a website redesign, seeking to vault the company beyond its roots in Internet auctions.

Adding new retail partners that helped improve its search and made shipping faster. While its mobile applications have reached 100 million downloads. This strategy of working on new opportunities and working on weak area not only eBay Inc penetrate in the market but also gives better results.

eBay made changes that were targets to convenience and customer service for marketplace visitors. The company paired up with Geek Squad Inc. This month to offer 24- hour technical support for electronics sold on the site. Even and release an application call eBay Now that offers customers same-day delivery.

The online retailer also redesigned its homepage, centering it around photos, similar to Pinterest Inc. A site that lets users share photos by pinning them to a virtual bulletin board. There are more than 2 million items lists a week from mobile devices.


Till now eBay is doing well by working on weak areas and new opportunities. The strategy to use mobile as a sale point gave an edge to eBay. Which clearly reflected in the Third Quarter results. It clearly demonstrated an example of Market Penetration. Up-coming holiday season as far as I see will also advantage from this strategy.

No comments:

Post a Comment