Market penetration is a growth strategy whereby a company concentrates on expanding its market share. This is done by attracting new customers, grabbing customers from competitors, or attracting customers who are not currently using the product. Market penetration is carried out, among other things, by charging lower prices and intensifying promotion more broadly.
Before discussing methods or ways to achieve market penetration, it is better if we first understand the things that must be considered, quoted from dailysocial.id:
Look for problems and validation in the field. A startup has a greater chance of success when it is able to test and validate its solutions. By interacting with others and asking the right questions, you can test whether your ideas really solve problems or not. In addition, you will also find out potential customers and market availability for the product you are developing (id.techinasia.com).
Know the user to determine the strategy. When talking about the initial phase of a startup, all kinds of strategies must be tried to achieve business targets. Some are successful and some fail. However, it should be underlines that all successful strategies do not necessarily apply to all categories of business.
Take lessons from customer acquisition efforts. No less important is building a connection with users to understand what they really need and want. From users feedback, startups can develop the best experience for them. This is much more important than building a user base by providing continuous promos
Competition encourages you to learn faster. Strategy is needed to build a user base, increase business, and maintain its position in the competitive market. Competition is healthy. The more players, the better it is to drive product or service penetration.
There are three marketing methods to achieve greater market penetration:
1. Grab customers from competitors
2. Sell more to existing customers
3. Attract new customers to existing products and services.
For a penetration strategy to be effective, the market must be large enough to be able to maintain low profit margins. Market penetration is usually achieved by using an aggressive marketing mix. This includes low pricing strategies, sales promotion and advertising, and distribution channel expansion. The advantages of such penetration strategy include rapid diffusion, including the adoption of the company’s products in the market. In addition, the strategy becomes an incentive for companies to maintain efficiency. Another advantage, according cerdasco.com, is reduced competition and encourages the creation of goodwill.