What You Need to Know About Market Penetration
Everyone wants their cash for junk cars or any other business to grow. This seems pretty obvious considering the effective and successful growth of any business has to be centered on boosting revenue, brand awareness, loyalty, and much more. The big question we need to ask ourselves is what do highly successful companies do to ensure they put themselves in a position for strong and consistent growth? One of the strategies they heavily dwell in is market penetration.
Market penetration refers to the amount of a product or service that is sold to customers as compared to the estimated total market for that product or service. It is a measurement used to determine the potential market size and can be used to develop a strategy for increasing market share for a specific product or service.
It is important to frequently monitor your market penetration to identify any increases or decreases in penetration. If you are wondering how often to calculate market penetration, a good rule of thumb is to calculate it after every marketing and sales campaign. Doing so helps you highlight any changes in penetration and as a result, you will have a better idea of the success of your campaigns.
A company can use market penetration at the industry level to review the potential for a specific product or service and to gauge the acceptability it will have on the market. It can also help in giving you insights on how the market and your customers will view your products and customers. When it comes to market penetration, you want yours to be high. There are many benefits associated with high market penetration.
When you have a high market penetration;
– You are an industry leader
– You sell products and services that are already established within your industry
– You have a wide and recognizable brand
– You have good visibility in the market
– You have a strong brand equity
– You have a high sale volume and this means you have a strong leverage
High market penetration will offer you a marketing advantage and more potential for the continued growth and success of your business. High market penetration is the goal and should always be what businesses should aim to achieve. A good way to penetrate the market should start with market development.
Market development is a necessary strategy or action when trying to increase market share or penetration. It requires a clear set of steps that will lead to a boost in the number of potential customers. A market penetration strategy is focused on a company works towards a higher market share by tapping into existing products in existing markets.
Different market penetration strategies are many. You can change pricing, revamp your marketing, identify the need for a new product and launch it, or change your products or specific features of your product. You can also grow business in new territories and offer franchise opportunities. Additionally, you can identify a business partner to work with.