Almost every small business owner aims to increase their market share to improve sales and reap better profits. But to make this possible, it’s important to adopt the right market penetration tactics to push your products and services to more potential buyers. A market penetration strategy is any activity allowing you to break into any target market. One peculiar thing about a strong strategy is that it allows you to identify ways to push your product or services into a market filled with competing products with a significant market share.
This requires a good understanding of that target market and the existing products and services you must compete with. So, are you looking to increase the growth and sales of your product or service? Is there a target market you wish you could penetrate despite the presence of competitors? Then, here are six essential market penetration tactics you can use.
- Consider augmented promotions
There’s a reason why businesses invest a lot in product promotions and advertising – because they work. In fact, the more you promote a product, the better results you can expect. Advertising, for example, can work wonders for product and brand awareness. But that in no way means throwing money into advertising campaigns, as that may backfire. The most important thing here is to have a well-thought-through plan, factoring in your long-term and short-term business needs and your budget. Also, consider the information you put into your advertising campaign, as a competitor can easily ruin an easy-to-counter product campaign. It’s also important to pair your product or service with promotional products that your target customers or market will find useful. You can work with a supplier of promotional products – one experienced in making a wide range of high-quality promotional products.
- Try adjusting your price
Price adjustment is one of the most commonly used strategies to penetrate a new market. In most cases, business owners reduce their prices considerably to attract a potential buyer’s attention. But this strategy requires judicious application as over-adjusting your price could lead to adverse results. So, before lowering the prices of your products and services, you need to analyze your competitor’s products to ensure that yours do not fall short in terms of quality. This way, lowering your price a little can make your products more appealing. But if you have a comparatively inferior product in terms of quality, your price alterations will barely have any results, as your product will still look inferior. And, speaking of product quality, the next strategy is also important.
- Improve the quality of your product
If your product already falls short of your competitor’s in terms of quality, penetrating a market filled with competitors will be extra difficult. So, take the time to compare your product or service with those of your competitor and identify which areas of yours you need to improve to give you a comparative advantage. Next, market or advertise your improvements to your target customer in an effort to convince them about what makes your product better.
However, communicating your product’s advantages can sometimes be enough to do the trick with investing in any major product improvement. That means, even if your product falls short of quality, find other advantages about your product that you can market. For example, you can improve your packaging instead to make it more visually appealing. The truth is, most customers will pick a product for the first time simply because of appeal and not necessarily checking whether the product proves itself or not. But of course, if your product fails to prove itself after a customer purchases it, you’ll ikey lose that customer.
- Look for new distribution channels
Adding new distribution channels is another effective market penetration strategy. And it focuses more on product growth. Here, instead of sticking with only one distributing channel, you look for new opportunities to give your product more visibility in your target market. For example, if you currently distribute only to retail shops, adding a new distributing channel could mean adding telemarketing, email marketing, online deliveries, and so on.
Another way to add more distribution channels to improve visibility is to make your products available at the foot of your target customer. Creating a stand at trade fairs is a good
example. With this, it’s easier to directly meet potential buyers and showcase your products to them.
- Enter a new market in a different geography or location
Sometimes, your local target market may be too choked up with competitors to penetrate. In such a case, you can consider looking elsewhere for the same market but in a different geographical location. For example, instead of trying to penetrate the US market (if you’re a US business), consider focusing more on buyers in Mexico or Canada, who your competitors are yet to reach. You can also choose to go global, taking advantage of online solutions, international delivery services, etc. But before you consider entering any new geographical market, find out if you need to make any modifications to your packaging, prices, product, etc., to suit that new market. Also, ensure that your product meets all local guidelines and regulations in that market to avoid landing in legal hot waters.
- Understand the risks involved in market penetration
Entering a new segment of the market is always risky. Therefore, before you consider any strategy, take the time to understand the risks, know your target market, and assess your product to identify how best to get the desired results. Also, it would be best if you were certain about your expectations, budget, and penetration strategy best suits your product or service. That means conducting in-depth research and creating a plan.
But probably the most important thing is to know and understand the needs of your target customers. That means knowing what they want in a product like yours, what requirements they have, and how best to communicate the benefits of your product, service, or brand to them.