Business owners around the world have one common goal: growth. Developing a customized market penetration strategy is essential to achieving such a feat. By using the ideal approach for your company, you can expand your audience.
When you’re ready to infiltrate new markets, boost your sales, and gain a higher market share, it’s time to create a market entry strategy. Read on to learn about marketing penetration and the best techniques to use to take your business to new heights.
What is Market Penetration?
Market penetration determines how much consumers use products or services versus their total estimated market. Established organizations use this tool to determine how much they can boost their sales by increasing their market share.
A market penetration strategy refers to the process of infiltrating an existing market. Typically, the goal is to invade a niche as quickly as possible to grab a substantial market share. Once you succeed, you can implement techniques to retain your new clients.
Using this approach shouldn’t affect your overall marketing strategy. It should solidify your growth and revenue potential. However, don’t let your market penetration undermine the value of branding; these efforts should always go hand-in-hand for long-term success. Let’s look at some practical ways to penetrate your niche.
Market Penetration Techniques
Market penetration is one of the best marketing strategies for small business owners because it can quickly propel growth. Without further ado, here’s a list of ways to achieve it:
1. Strengthen Your Digital Marketing Efforts
Recent Pew Research data shows that only 7% of Americans don’t have internet access, making digital marketing efforts essential for businesses of all sizes and industries. If you want to capture audiences quickly, here are some strategies you can use:
- Social media marketing
- Email marketing
- Pay-per-click (PPC) campaigns
- Free webinars
- Downloadable content
Other techniques like search engine optimization (SEO) and content marketing can help you keep your customers, but they take time to build. To achieve quick results, you can use your online platforms to enhance your other market penetration efforts.
2. Launch New Distribution Channels
In today’s business world, customer experience is king. Launching new distribution channels is one of the most constructive penetration strategies because you can better serve your clientele. According to American Express, a whopping 78% of customers have bailed on a deal because of a substandard service interaction.
If you have a South Jersey shop, you can spread your products across digital platforms like Amazon, eBay, Shopify, and Etsy. When you open new distribution channels, you can reach more customers and serve them better.
3. Practice Price Adjustment Strategies
Price adjustment strategies are some of the most widely used penetration techniques across various industries. Using this approach involves manipulating prices to appeal to different buyers. Check out some of the strategies you can use:
- Discount and Allowance Pricing: You can offer cash discounts, price reductions, or special rates for off-season products or services.
- Segmented Pricing: This technique uses different prices for similar products or services, such as student and senior rates.
- Psychological Pricing: Applying this adjustment style involves manipulating prices to make them seem more affordable, such as using $19.99 instead of $20.
- Promotional Pricing: Using this approach requires reducing prices for limited periods. Doing so creates a sense of urgency, boosting sales as a result.
- Dynamic Pricing: You can set flexible prices for your products or services based on demand. For example, you can develop a happy hour pricing during low-traffic times.
4. Tap International Clients
In today’s modern world, specific technologies have made it easier for companies to target international clients. It’s now possible to capture, engage, and serve customers from the other side of the world.
A Do Dropshipping article reveals that apart from the United States, the United Kingdom, South Korea, France, and China also show massive e-commerce potential. Selling your products to international markets is a quick way to expand your audience.
5. Think Outside the Box
Market penetration may seem like a monotonous aspect of marketing, but it’s an exciting endeavor. If you have an experienced team behind you, you can use your strengths to develop a customized infiltration approach.
Using any market penetration technique excessively can lead to disappointing results. For example, a luxury brand often offering discounted items may hurt its image. Consumers might later find regular prices too expensive.
When you start thinking outside the box, you can develop solutions ideal for your company. For example, product improvement is an effective penetration technique. However, if you already have groundbreaking products, the ideal strategy is an education campaign. Below are other unconventional approaches you should consider:
- Convenient buying process: To do this, you can expand your payment options, allow pickups, or offer free shipping.
- Encourage referrals: You can offer rewards such as coupons or points to customers who refer family members and friends.
- Packaging upgrades: Sometimes, aesthetic or functionality tweaks can become game-changers. Find out what your customers need. From personalization to transparency and shelf life information, there are several ways to reinvent your packaging.
Dominate Your Industry Now
Using marketing penetration strategies can help you unlock exciting new opportunities for your brand. It has many advantages for companies of different sizes and industries, from fast growth to improved sales and massive audiences. However, using the wrong strategies can harm your brand, which could hurt your long-term goals.
If you want to take your business to new heights, leave the strategizing to the pros. An experienced digital marketing agency like Create By Influence can develop a customized penetration technique to take your business to new heights as quickly as possible.
Would you like to learn more? Check out our case studies to find out how we’ve helped clients achieve their goals. We’ve worked with an extensive range of companies and always provided clients with exceptional results. Get in touch now to begin your growth journey with us.