If you’re a business owner, penetrating more markets to widen the reach of your products to new customers should be your priority. It’s believed that it may help drive more sales into your business. Market penetration aims to improve your market share for your current product or promote a new one that you want to launch.
Several penetration tactics can help you gain a significant market share for your new or existing offering. You may consider investing more in advertising via email, redesigning your products to be more attractive, giving discounts, and having pricing techniques that beat your competitors.
One of the tactics that have worked for many startups is lowering the price of their products to attract buyers. In addition, to penetrate your chosen market, you may consider diversifying your range of products.
To help you know more about these market penetration strategies, this article discusses them in depth. Here are some tactics for market penetration that’ll accelerate the growth of your company:
1. Building Partnerships And Getting Acquisitions
One of the fastest ways to get a big market share is by acquiring other competing enterprises with an established customer base. Besides acquiring physical shops and enterprises, you can be more strategic and buy online businesses with well-structured marketing tactics and use their online networks to reach their customers.
The benefit of the acquisition strategy is that you tap into the customer base, improve your operations, and retain current sales. The only challenge that you may face when acquiring your target enterprises is it might be costly. As a result, you may need to seek funding from elsewhere to fulfill your dream.
However, you need to know the kind of funds you require as various types of funds are available for you. You can visit online links such as https://www.workspan.com/market-development-funds-and-partner-funds-definition/ and learn more.
In addition to acquisition, you can partner with another business that deals in similar products like yours to grow market share and increase sales together. However, it’d be best if you exercised diligence to ensure that you’ll end up in a mutually beneficial relationship with them.
2. Doing Product Changes
Product improvement is an essential strategy when seeking to penetrate deeper into the market of your choice. Product changes may improve the quality or options of your products and services, which effectively attracts new customers from previously untapped markets.
If your product sales have been declining, you can consider enhancing its features which adds value and creates client interest. Research by going online to see product reviews from your customers or your competitors’ customers. From the reviews, you can come up with product changes such as:
• Using eco-friendly materials;
• Creating better and more attractive packaging;
• Improve struggling features of a competing product;
• Create unique features for your product or service; and
• Make your product more usable by a wide range of patrons.
The changes you make to your product can improve the value of a product for your target customers where the previous versions failed. However, to stand out from your competitors, study the weaknesses that their products have to be able to capitalize on them.
3. Adding Distribution And Sales Channels
Before your products arrive at the final consumer’s way, distribution channels connect you to sellers of your products such as retailers and wholesalers. Therefore, recruiting more retailers and wholesalers of your product gives you’re a wider geographical reach, thus increasing your customer base. Other ways of improving distribution and sales channels include:
• Boosting your shipping times and trips;
• Launching your product on different online selling platforms;
• Establishing new fulfillment channels; and
• Growing your shipping power to cover more countries or regions around the globe.
The above strategies may help you reach areas that you haven’t gone before to grow your organic reach and following and establish a new demand for your customers.
4. Having A Competitive Pricing Strategy
The market might be flooded with products similar to your niche of production. As a result, you need to strategize on how you can capture a significant market share. One tactic that you can use is by becoming creative in your pricing mechanisms to firm up your competitiveness in the market. Newcomers often use this strategy to create a good impression. They may choose to sell their products at a lower price compared to their competitors.
In most cases, if the product hasn’t compromised on quality, they attract an influx of customers to their products and services. However, once you have reached wide and have gained loyal customers, you can subtly increase the price to the range of your competitors so that you can boost your revenues.
One of the areas that you can take advantage of with regards to pricing techniques is in the e-commerce business where customers’ best interests are placed first after price. Other pricing strategies include:
• Giving discounts after repeat purchases;
• Rewarding loyalty points after every purchase, which can be redeemed to buy a product;
• Developing coupon systems for your clients;
• Offering discounts on purchases that exceed a certain amount; and
• Giving free products to customers who make referrals.
If the above pricing strategies are implemented well, they can give high returns on investment (ROI) within a short period. However, before enacting a specific pricing tactic, first study the pricing strategies that your competitors are using and strategize on how you can improve them.
5. Improving Your Marketing And Promotion
Another effective way of gaining a bigger market share is by investing more in your product promotion and marketing budget. You can invest in online marketing more on social media sites on the web. You can also leverage ads which also can improve the visibility of your brand and rank higher in search engine results pages.
Once you’ve identified the best areas you can use depending on where your target audience can be found, create adverts that quickly lead to conversion. If you’re selling online, you should have a data collection mechanism that helps you track where most of your customers come from so that you can invest more in that platform. For an online store, you can level up marketing ads through:
• Use of targeted advertising in your campaigns;
• Launch more lengthy marketing campaigns;
• Leverage several platforms;
• Launch marketing campaigns in other countries and territories;
• Develop affiliate offering; and
• Leverage press releases for immediate brand visibility.
After leveraging these marketing strategies, there’s no telling the returns that your business can reap. However, ensure that you use tracking and analytics so that your marketing efforts can be more streamlined along the way.
Business growth through market penetration isn’t a walk in the park. Gaining a bigger customer base will demand an investment of time, finances, and labor. However, if you’re focused on implementing the strategies highlighted in this article, you can rest assured that you’re bound to reap high returns from your investment.