Open AccessModel of market penetration into the service sector
Author(s) -
Rolandas Drejeris,
Antanas Kavolynas
Publication year - 2015
Publication title -
management theory and studies for rural business and infrastructure development
Language(s) - English
Resource type - Journals
eISSN - 2345-0355
pISSN - 1822-6760
DOI - 10.15544/mts.2015.03
Subject(s) - market penetration , penetration (warfare) , business , order (exchange) , service (business) , service quality , marketing , industrial organization , risk analysis (engineering) , operations research , engineering , finance
The article discusses the theoretical and practical aspects of the penetration into established market of the service sector. Lack of information about actual practical issues of market penetration for service company is to be considered as a problem of the paper. The goal of the paper is to present the procedural model of the market penetration actions for services sector. In order to create execution model scientific information on issues of market penetration is structured, synthesized, after its assessment according logic, feasibility and applicability of the results and the integrity of the business in terms of services. The flexible model is formed and suggested, which consists of 9 components: identification of some market leader(s), determination, which is the most attractive segment for serve, analysis of market leader’ service quality according 2 aspects, the search of the opportunities to improve the quality of service, analysis of the possibilities for potential price reductions, determination of new services purposefulness, identification of support desirability, and formulating of penetration strategy, which has to be clear according research results. There are reasoned content and consistency of the components of the proposed model in the article. The model has been tested on real business conditions; it helps for the service company to penetrate into the market.