Concept summarized by Sam Mishra, MBA (MIT Sloan)
To penetrate a market, a product / service can be priced as low as possible to gain a large number of customers. If the marketing strategists decide that customers buying criteria is based primarily on price, pricing low, or lower than the competition, can be a good strategy. For existing markets, penetration pricing can help improve the sales of existing products. Please refer to the market penetration quadrant within the Ansoff Matrix framework to understand why.