How marketing penetration strategy helps you to grow your business?
Market Penetration is a process of how much a product or service is being used by target customers who consume that product or service. A strategy for driving sales without changing your products can be used with a metric that helps to expose your market share. This penetration strategy can be measured while,
- Knowing your customers
- Geographical Area
- Business density
These are the factors that easily help us to know the measurement culture of market penetrations. Simply we can use the term “TAM” for the total addressable market feature. Market penetration is totally different from market share as well.
Market penetration is the (%) of your target market that you sell during a specified time period.
Market share is the portion of the total value that your business commands within the market complex.
There are proven strategies that will support increasing your market penetration;
- Lowering the price of a product. (Time limitation for appealing to a broad audience)
- Reducing churn rates
- Increasing customer usage
- Reward programs
- Implementing Loyalty
- Adding new features to existing products
- Eliminating sales barriers
- Partnerships with trusted companies while maintaining co-branding
Market penetration will help the firm to gain a larger share of a targeted market and also a brand that takes its existing product or service to an already thriving market with high demand. If a company gain a large market share that will support the entire firm to boost its business to the next level within the business circle. Once we get a good brand name that will add more value to run the business in the same mode with different Innovations while providing ultimate services of solutions towards the customers in order to fulfil their requirements will eventually be draining competitors of opportunity & money.
Conclusion: Good Market Penetration will support the entire business to the next milestone. Will support increased sales, re-brand the company, convert your clients as loyal customers of you’re specified business, allow a brand to take existing products or services to high demand & begin drawing -in a large share for your business. The market penetration rate for business products is between 10% and 40%. Good market penetration will be monitored every quarter.