6 Essential Market Penetration Tactics for Small Business Owners

Almost every small business the owner’s goal is to increase his market share to improve sales and get better profits. But to make this possible, it is important to adopt the right market penetration tactics to bring your products and services to more potential buyers. A market penetration strategy is any activity that allows you to penetrate any target market. The distinctive feature of a strong strategy is that it allows you to identify ways to bring your product or services to a market that is full of competing products with significant market share.

This requires a good understanding of the target market and the existing products and services you have to compete with. So, do you want to increase the growth and sales of your product or service? Do you have a target market that you want to penetrate despite the presence of competitors? Then, here are six essential market penetration tactics you can use.

  • Consider extended promotions

There is a reason why companies invest heavily in product promotion and advertising because they work. In fact, the more you promote a product, the better results you can expect. For example, advertising can do wonders for product and brand awareness. But this in no way means throwing money at advertising campaigns, as this can backfire. The most important thing here is to have a well-thought-out plan that takes into account your long- and short-term business needs and budget. Also think about what information you put into your advertising campaign, as a competitor can easily spoil an acceptable product campaign. It is also important to link your product or service with promotional products that are useful to your target customers or market. You can work supplier of promotional products – who have experience in the production of many high-quality promotional products.

Price adjustment is one of the most commonly used strategies to penetrate a new market. In most cases, business owners lower their prices significantly to attract the attention of a potential buyer. But this strategy requires judicious implementation, as excessive price regulation can lead to unfavorable results. So, before lowering the prices of your products and services, you need to analyze your competitor’s products so that yours is not inferior in quality. So lowering your price a bit can make your products more attractive. But if you have a product that is relatively inferior in quality, your price changes will have almost no effect because your product will still look inferior. And speaking of product quality, the following strategy is also important.

  • Improve the quality of your product

If your product is already inferior in quality to that of your competitor, market penetration filled with competitors is especially difficult. So take the time to compare your product or service to your competitor’s and determine what areas you need to improve to give you a comparative advantage. Next, market or promote your improvements to your target customer to convince them of what makes your product better.

However, communicating the benefits of your product can sometimes be enough to invest in major product improvements. This means that even if the quality of your product is below par, find other benefits of your product that you can market. For example, you could instead improve your packaging to make it more visually appealing. The truth is that most customers choose a product for the first time simply because of the temptation and may not check whether the product proves itself or not. But of course, if your product can’t prove itself after someone buys it, you’ll naturally lose that customer.

  • Find new distribution channels

Adding new distribution channels is another effective market entry strategy. And it focuses more on product growth. Instead of sticking to just one distribution channel, you look for new ways to make your product more visible to your target market. For example, if you currently only distribute to retail stores, adding a new distribution channel might mean adding TV marketing, email marketing, online deliveries, etc.

Another way to improve visibility to add more distribution channels is to make your products available within reach of your target customer. Creating a stand at trade shows is good

example. This makes it easier to meet potential buyers directly and introduce them to your products.

  • Enter a new market in a different geography or location

Sometimes your local target market may be too clogged with competitors to penetrate. In this case, you may consider looking for the same market elsewhere, but in a different geographic location. For example, instead of breaking into the US market (if you’re a US company), consider focusing more on buyers in Mexico or Canada that your competitors can still reach. You can also choose to go global with online solutions, international delivery services, etc. But before entering a new geographic market, find out if you need to make any changes to your packaging, pricing, product, etc. to fit the new market. Also, make sure your product complies with all local guidelines and regulations for that market to avoid landing in legal hot water.

  • Understand the risks involved in market penetration

Entering a new market segment is always risky. Therefore, before considering any strategy, take the time to understand the risks, know your target market, and evaluate your product to determine how best to achieve the desired results. It would also be best to be sure of your expectations, budget, and distribution strategy that best suits your product or service. This means conducting thorough research and creating a plan.

But probably the most important thing is to know and understand the needs of your target customers. This means you need to know what they want from a product similar to yours, what requirements they have and how best to communicate the benefits of your product, service or brand to them.