Channeling further investment into marketing
Another tried-and-tested way to boost marketing penetration is to invest more funds into your marketing campaigns. By employing an omnichannel market development strategy
and making sure that your brand messaging, voice, and image is just right, you’ll generate increased interest, engagement, and trust in your brand that is more than likely going to increase your market share and entice some customers away from the competition.
Once you’ve launched your marketing campaign, don’t forget to make use of all that data. Collating all those metrics from disparate channels can seem like an impossible task, but it really need not be. Tools like Affise BI help you manage all that unstructured data across different marketing channels intuitively. You don’t need any technical expertise to benefit from Affise BI and start making better, evidence-based business decisions every day.
Updating your product
Market penetration is all about acquiring more of your market and that means acquiring customers from your direct competitors. In order to entice people who are already loyal to your competitors over to your business, you’ll need to differentiate your products from the competition.
This means making your products a little bit different, or in some way better. By offering the most innovative and attractive products and services in your space, you’ll win new customers and increase your market share in the process.
Acquisitions or partnerships with other companies in your space
Sometimes teamwork is the key to success. Mergers, acquisitions, and partnerships with other companies sharing the same market space can help businesses grow. You’ll benefit from their brand reputation and ready-made customer following.
This kind of collaboration is a great way to achieve rapid growth and expansion. The best partnerships exist between companies that each have something to offer one another. Perhaps you have a product feature that your partner wants to add to their product line in the future (and vice versa). Hey presto, you’re helping each other grow and expand in your product space.
Using a tool like Affise Reach can help you find the perfect business partner. Once you have, ensure that you’re equipped to effectively share data between your respective systems. After all pooling information is what partnerships like these are all about, right? Affise’s data transfer platform, CPAPI, makes it super easy to transfer, synchronize, and automate data connectivity between systems and will help you start building brand awareness from day one.
12 market penetration strategies you must know
Before we set you off on your very own market development campaign, let’s make sure we’ve got all the groundwork covered. Before taking a company’s product to market it’s important to set aside some time to develop a robust market penetration strategy. Once you’ve established your key goals and aims, identify the processes that are going to help you get there.
Not sure where to start?
No problem, these 12 market penetration strategies will help you get off to the best start possible.
1. Lower prices
We’ve already discussed how bringing new products to market at a lower-than-average price point can help boost market penetration. But that’s not the only way to achieve success. Pricing is one of the single most important factors influencing market movements, so it’s important to remain on the ball at all times.
Stay abreast of your competitors’ products and pricing strategies and ensure that your products and services are always priced competitively for optimum market penetration.
Pricing techniques that help increase market penetration include:
- Price drops – if your product isn’t gaining traction in a competitive market, entice customers over with low prices.
- Payment plans – if you’re offering a service with a monthly subscription fee, look at the data and identify whether monthly or annual payments are best for your market share.
2. Discounts & promotions
As well as adjusting your standard pricing, it’s worth devising some targeted discounts, offers, and incentives that will encourage prospects to engage with your brand over your competitors.
There are so many different types of offers out there from buy-one-get-one free deals (BOGOF) to flash sales and product giveaways. The possibilities are endless. Offering something as seemingly benign as free shipping could be enough to close those first sales.
Popular discount and offers that help increase market penetration include:
- Discounted products
- Flash sales
- Loyalty rewards
- Free shipping
- One month free
A great way to structure your discounting strategy is to use the FIFO method. FIFO stands for first-in-first-out. In other words, when it comes to inventory, you want the oldest items in stock to be the first to go. If stock is proving hard to shift, it’s worth applying a discount to existing products in order to help them move off the shelves faster and boost sales volumes.
3. Aggressive advertising
Advertising is critical to achieving good market penetration. When companies launch products into competitive and already saturated markets they often fall on aggressive marketing techniques as a way to reach the broadest market segments possible.
The advertising techniques you choose will depend on the type or product or service that you are offering. In general, it’s best to combine a range of different advertising mediums to establish the greatest reach. Digital advertising is a must, but you may also wish to utilize some traditional ad forms too. Let’s take a look at some of the best options at your disposal.
Traditional advertising techniques:
- Television media
- Newspaper/magazine ads
Digital advertising techniques:
- Paid-per-click (PPC) ads
- Social media ads
- Content marketing
- Email marketing
- Mobile marketing