• Business
  • SEO
  • Social Media
  • Branding
  • Ads
  • Others

10 Best And Effective Market Penetration Strategy For 2022

A market penetration strategy is a product market strategy in which a company aims to establish more domination in a market in which it already has a presence. A component of this approach frequently focuses on increasing one's share of an existing market via a process known as market development.

Market growth entails the concrete measures you want to take to broaden your target market. Instead of focusing on clients in your present market, you focus on an underserved, non-buying, or new segment of the market.

Market Penetration - Meaning, Strategy, Purpose with Examples of Internet, Smartphones etc. (254)

Market Penetration Strategy And SaaS

A market penetration approach is a low-risk company development method for SaaS firms that are bootstrapped or hesitant to invest extensively in more hazardous growth techniques.

Simply said, it's a strategy for planning how to expand in an already robust industry with similar products, and acquiring market share by stealing your competitors' subscribers.

Positioning oneself in a well-established market is a secure decision since it indicates that there is a demand for items in this category. To compete and expand alongside current organizations, however, solid implementation and execution of strategies surrounding your product positioning, price, user experience, and marketing are required.

A man behind a bar graph holding a felt tip pen draws it
A man behind a bar graph holding a felt tip pen draws it

10 Best Market Penetration Strategy

The actionable component of a market penetration definition is concerned with practical strategies. Market penetration tactics enable a brand to take an existing product or service to an already thriving market with strong demand and begin capturing a bigger proportion of the overall market, eventually draining competitors of opportunity and money.

Market penetration (as a collection of acts) is based on Igor Ansoff's Ansoff Matrix. The grid includes four growth techniques for entering a new or current market with new or existing products/services.

Market penetration on Ansoff's Matrix
Market penetration on Ansoff's Matrix

Utilize Dynamic Pricing

Many internet merchants participate in pricing wars in order to entice customers to purchase items and services at the lowest possible cost. The market penetration approach becomes more aggressive and sophisticated since internet pricing fluctuates throughout the day.

Dynamic pricing enables pricing automation, which means that regardless of the size or complexity of a specific product or service, the related software investigates the market and sets prices to produce actionable knowledge.

Include Distribution Channels

Adding distribution channels is another growth-oriented market penetration technique. For example, if a business relies only on retail locations, it may profit from expanding its reach by using additional channels such as email marketing, web marketing, and telemarketing.

Specific Locations To Target

Some products and services have seasonal demand, while others have a higher demand based on geography (A sunscreen brand targeting sunny Los Angeles versus rainy Seattle). Targeting a needy area would result in an increase in usage and sales in that area.

Enhance Products

If a brand can attribute market share to a specific product or service, it makes sense to explore improving on what the audience currently enjoys. Understanding what people enjoy (or, more importantly, detest) about a product provides a chance to make it even more appreciated and preferred based on technological advancements in materials, newly designed accessories, and so on.

Expand Into New Geographical Markets

The ever-increasing spending in the Latin American market has piqued the interest of numerous businesses, prompting them to expand their offers to Mexico and other Latin American countries. To make the possibility for expansion a reality, many organizations use Spanish translation services to guarantee that their offers are not just in Spanish, but also successfully resonate with the Latin American peoples and culture.

CNET's foray into the Hispanic market with zeal, teaming with Latin World Entertainment and signing well-known celebrity Sophia Vergara, is a prime illustration of this.

Make An Entry Barrier

Wise companies build barriers to entry for rivals by repurposing existing resources or pursuing new ones that will either make a product or service outstanding or allow it to be offered at an incomparable price.

A food provider, for example, that relies on numerous farms for production may reduce total costs by investing in its own farm rather than purchasing essential items from a third party. Amazon is constantly investing in its customer service, features, and market penetration, making it practically hard for another online platform to compete.

Modify A Design

Water is important to human life, yet it has only been available in plastic bottles in the last century. Wine is another example of a beverage that has been around for centuries, but selling it in a box rather than a bottle is a fairly modern market penetration technique.

Make It Easier To Purchase

How easy is it for customers to buy from you online? Do you provide an online checkout? Making your goods and services easy to locate and purchase is a certain approach to gain a larger proportion of a particular market.

Create And Recruit Proven Advocates

News-of-mouth continues to be an excellent strategy to spread the word and gain additional supporters. Many companies have a membership and/or referral schemes. Advocates build support by actively recruiting friends and family, allowing the brand to capture a greater market share and earn more money.

Amazon Prime membership establishes its own internal "club." According to 26 Amazon Prime Day statistics, 100 million US buyers have an Amazon Prime subscription (62% of Amazon's customer base in the US)!

Educate The Market

The issue for a newer brand entering an established market is not developing a need since it already exists. The true challenge is teaching the market about a new option or choices while diverting attention away from existing brands.

Cabot, a cheese manufacturer, uses Pinterest and a range of social media platforms to educate the market on grilled cheese recipes, farms and farmers in their 'family' of production, New England ski areas, and lactose-free choices.

A man draws a bar graph, pie graph, and people
A man draws a bar graph, pie graph, and people

What Is Market Penetration Pricing?

Businesses use this marketing tactic to entice customers to a new product by selling it at a reduced price. This is done to entice clients away from other brands and to outsell equivalent items at a higher price range.

What Are The Most Common Risks Of A Market Penetration Strategy?

Price reductions across the board might result from a market penetration strategy. Competitors sometimes attempt to match pricing, especially if their items are identical. To outperform the competition, the firm that launched the market penetration plan must cut its pricing even further.

Conclusion

Market penetration strategy entails focusing on selling more of your SaaS product into your existing market in order to get a larger market share and more consumers from your competition.

It should be able to raise your market share and gradually achieve dominance in your industry with strategic planning around price, competition, boosting your promotional activities, and making any required adjustments to your product.

Share: Twitter | Facebook | Linkedin

About The Authors

Keith Peterson

Keith Peterson - I'm an expert IT marketing professional with over 10 years of experience in various Digital Marketing channels such as SEO (search engine optimization), SEM (search engine marketing), SMO (social media optimization), ORM (online reputation management), PPC (Google Adwords, Bing Adwords), Lead Generation, Adwords campaign management, Blogging (Corporate and Personal), and so on. Web development and design are unquestionably another of my passions. In fast-paced, high-pressure environments, I excel as an SEO Executive, SEO Analyst, SR SEO Analyst, team leader, and digital marketing strategist, efficiently managing multiple projects, prioritizing and meeting tight deadlines, analyzing and solving problems.

Recent Articles

  • Kansas Sports Betting Goes Live - How Much Revenue Will The State Bring In? More States To Follow?

    Others

    Kansas Sports Betting Goes Live - How Much Revenue Will The State Bring In? More States To Follow?

    Now that sports betting is legal in Kansas, bettors are profiting big time. From September 1 to September 11, over 2.4 million wagers were made in Kansas, and winners collected over $47.5 million, according to the Kansas Lottery.

  • 7 Ways Well-Chosen WordPress Theme Will Help Your Website

    SEO

    7 Ways Well-Chosen WordPress Theme Will Help Your Website

    These days, starting a personal website is so easy that even a student with no experience can do it.

  • 7 Reasons To Hire An Accountant As A Student

    Others

    7 Reasons To Hire An Accountant As A Student

    Stepping into adult life isn’t only about partying whenever you want and having the freedom to never clean your room ever again.

  • How To Choose The Best Project Management Apps On The Market

    Business

    How To Choose The Best Project Management Apps On The Market

    Having a reliable tool for managing projects makes it much simpler to plan, carry out, and keep track of how far along a project is.

  • How To Use Online Reviews To Grow Your Business

    Business

    How To Use Online Reviews To Grow Your Business

    Online reviews are a great tool that you can add to your marketing and promotion plan to help you attract new customers.

  • What Is Guerilla Marketing, And How Do You Launch Such A Campaign?

    Business

    What Is Guerilla Marketing, And How Do You Launch Such A Campaign?

    In the ever-evolving marketing world, businesses must continually find new ways to capture consumers' attention.

  • How Your Leadership Team Can Improve Employee Happiness

    Business

    How Your Leadership Team Can Improve Employee Happiness

    Employee happiness can be one of the most valuable assets a business has. It makes employees stick with the same business longer, boosts their productivity and encourages them to form stronger partnerships with their coworkers.

  • Branded App Benefits And Risks

    Branding

    Branded App Benefits And Risks

    A branded app is an application developed by a business to market its brand. Branded apps usually show who the company is by using its slogan, values, colors, and logo, as well as its style and look.

  • Search Engine Optimization For Startups - Tools And Strategies For Rising To The Top

    SEO

    Search Engine Optimization For Startups - Tools And Strategies For Rising To The Top

    The core of digital marketing is still search engine optimization (SEO). Even though new strategies and approaches are always being made, high SERP rankings for a company's keywords are still a big part of how well many companies do.