What is market penetration?

Market penetration refers to the strategy of increasing a company's share of existing markets by enhancing sales of current products or services among current customers. This approach focuses on maximizing the existing customer base and improving usage or purchase frequency without altering the product or venturing into new markets.

The chosen answer accurately highlights the concept of manipulating current markets and products for growth, which aligns closely with the practice of leveraging established customer relationships, improving marketing tactics, and possibly adjusting pricing or promotion strategies in order to increase sales volume among current users.

While expanding into new geographical locations, creating new products, or reducing product prices can all be part of a broader growth strategy, they fall outside the specific definition of market penetration. Instead, those actions would be more aligned with market development, product development, and pricing strategies, respectively. Thus, focusing on current markets and optimizing the existing product offering is the essence of market penetration, making the selected answer the most appropriate choice.