Market penetration strategies are methods used by companies to increase the number of consumers that choose their products or services over their competitors. These strategies aim at increasing a company’s share in the marketplace, and consequently its sales. You can achieve market penetration by using aggressive marketing strategies and other tips that we’ll discuss in this blog post. While market penetration strategies can be challenging to implement at first, they can yield a significant return on investment by raising brand awareness and increasing sales.
7 market penetration strategies for new, small businesses
Here are some effective market penetration strategies for your new businesses
Adjust your pricing
Pricing your product or service too high may discourage potential customers from buying. Therefore, adjust your prices to align with your competitors. Also, ensure that your product is of high quality and comparable to that of your competitors.
Brand awareness will help you claim a big share in the marketplace. You need to invest in advertising methods that will help you reach consumers at their level. Increasing advertising for your products will increase product/service awareness and encourage potential customers to try it at some point.
Open new distribution channels
You can only reach more customers if you have different channels of reaching them. Operating from one central point may limit you hence the need to add more distribution channels. For example, a small retail shop operating from a central point can open online social media pages to sell its products online. The shop can also create a website where potential customers can see some of their products and buy directly from the website.
Improve your products
Every business focusing on increasing its market share needs to create high-quality products that will compete fairly. The marketplace is highly competitive with various similar products, so to break even as a small business, you need to enhance your products to meet the preferences and needs of your target consumers. Having high-quality products that solve the pain points of your consumer base will give you a competitive advantage over your competitors. Study what your competitors offer, then advance or add more features to your products.
Create a reward program
Once you introduce your products to the market and create a strong customer base, create programs that will reward loyal customers. You need to give your customers a reason to choose your product over other similar products in the market and you can achieve this by offering incentives.
Give your company personality.
To compete fairly with other big players in the market, give your company a personality. This helps since consumers will view buying your product or service as special compared to others. Your advertisements and company profiles should describe how you began and why you are committed to bringing the best product to the market. Create something unique that will entice many consumers to choose your brand.
To remain relevant in the industry, you need to advertise your brand aggressively. Adopting the right advertising campaign can help you with market penetration. Create nostalgic advertising campaigns that will push many of your target consumers to buy your product. Couple the advertising with an aggressive sales campaign, and you will have a winning combination for market penetration.
Recruit established advocates
Word of mouth remains one of the most effective ways to raise awareness when penetrating a new market. In today’s digital world, this has been made especially easy thanks to online influencers. Collaborating with trusted influencers in your industry can go along in raising awareness and building trust with your target audience.
Benefits of market penetration strategies
Understanding the importance of market penetration strategies may help you make better decisions during your marketing campaigns. Below are some of the advantages of market penetration strategies.
Other than conquering new markets, market penetration strategies can help your business increase your customer base. Strategies such as lowering prices help capture the attention of potential customers, eventually increasing sales. The more customers you get, the better chance you have at meeting or exceeding their needs and eventually earning their loyalty.
Market penetration provides an opportunity for businesses to position themselves on the same level as their competitors. It allows you to improve your products and services, so you can attract more customers and increase your revenue.
If you are trying to penetrate a new market, the tips mentioned above will help you create a winning strategy. Before implementing any of them, conduct thorough research on your product and target market to ensure that you create an effective strategy.