Management Theory and Studies for Rural Business and Infrastructure Development, Volume 37, Number 1

Model of market penetration into the service sector

Rolandas Drejeris, Antanas Kavolynas


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.

JEL Codes: M3, M2, O22, O21.

Keyword(s): market penetration, model , service business, market segment, customers’ needs

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.