Market Penetration Strategy
A business may grow through Market Penetration by using some of the strategies listed below:
1. Change the Price of the Product: Even though Veblen goods contradict the law of supply and demand, a business is more likely to expand Market Penetration by decreasing its prices than by increasing its prices. In most cases, a company cannot increase market share by increasing its price. The business must have an in-depth knowledge of its profit margins and input costs. It also requires an awareness of its customer base and whether a lower price will attract the target audience that the company intends to keep in the long run.
2. Adding New Features: Another effective Market Penetration method includes adding new features to an existing product without making major changes. For example, a Customer Relationship Management (CRM) system could be improved with an email integration function, attracting consumers who were previously unwilling to use it. Remember when GPS was added to mobile phones to increase their application and utility? That resulted in an era of applications that used GPS services to address particular user problems.
3. Innovative Marketing: Innovating marketing strategies are often used by marketers to increase product and service Market Penetration. Virtual reality is a tool that retailers have long used to allow consumers to virtually try on and experience products before making a purchase. Marketers use cutting-edge strategies to expand their market penetration, such as chatbots, 360-degree videos, and user-generated content.
4. Field Marketing: Field marketing is conducted by highly skilled marketers who promote the company’s efforts in lead generation, customer relationship management, and brand creation. It consists of merchandising, auditing, sampling, roadshow, experiential marketing, demonstration, and targeted direct sales promotions. Field marketers can facilitate faster product adaptation and increase Market Penetration.
5. Integrated Marketing: Customers can engage with a brand or business more consistently with the help of integrated marketing. Integrated marketing makes it possible to integrate different marketing efforts in the complex and fragmented world of marketing. For instance, a product can be advertised on YouTube, in television commercials, on mobile ads, and so on to communicate the same message everywhere.
6. Enter Newer Geographies: Entering previously untapped markets is a tried-and-true Market Penetration strategy for increasing the adoption of products. Businesses with a successful product launch in one region can expand to other regions since the use cases are usually comparable.
7. Influencer Marketing: Influencer partnerships are preferred by businesses as a means of promoting their goods. Famous people who have large followings on social media sites like Facebook, Twitter, Instagram, and LinkedIn have the power to affect a product’s sales.
8. Dealerships & Partnerships: Forming newer collaborations is another example of a Market Penetration approach to reach a wider target audience. Dealers and partners can attract new customers to an existing product since they have a wide geographic reach. The way that producers of consumer electronics depend on distributors and retailers to market their products is an ideal example.