Post by b2cdatabase on Feb 7, 2024 18:49:24 GMT 12
You will therefore use the Ansoff matrix to assess the risk for your business of using one of the growth strategies. Generally speaking, market penetration is the least risky strategy and diversification is the most dangerous. Ansoff matrix - Marketing strategy - Cube Group Learn 4 key marketing strategies There are 4 key marketing strategies: market penetration, market development, product development and diversification. 1. Market penetration strategy Market penetration strategy (also called pricing strategy) is the use of new tactics that can increase sales to existing and new customers in the market in which you already operate. Humanly speaking, it's about ensuring that the largest possible group of customers in a given market buys from you.
How to calculate market penetration rate? Just Phone Number List divide the number of customers by the size of the target group and multiply the result by one hundred. (Number of customers / Size of target group) × 100 The result from 5-15% is a feature of beginner and medium-sized brands, 30% is a feature of strong brands, around 50% - well, we are talking about monopolists here. What to focus on in your market penetration strategy? You can focus on your pricing strategy and offer a low price - compared to the amounts proposed by the competition. Use sales and promotion mechanisms. Try to lower product prices or offer a subscription plan, multi-packs, or a loyalty program that generates discounts.
Greater market shares can also be obtained by improving the product - a larger range, more detailed descriptions, availability of sizes, colors and variants. Improving customer service through various communication options, returns policy, personalized communication, order processing times, payment methods, new distribution channels and more. You can also think about acquiring a competitor. Acquisitions can quickly increase your market share and attract new customers. Who is the market penetration strategy for? This strategy can be useful for established companies that want to expand but don't have a pressing need to expand beyond their niche. It can also be helpful for startups that want to expand but don't currently have the resources to expand beyond their existing target markets.
How to calculate market penetration rate? Just Phone Number List divide the number of customers by the size of the target group and multiply the result by one hundred. (Number of customers / Size of target group) × 100 The result from 5-15% is a feature of beginner and medium-sized brands, 30% is a feature of strong brands, around 50% - well, we are talking about monopolists here. What to focus on in your market penetration strategy? You can focus on your pricing strategy and offer a low price - compared to the amounts proposed by the competition. Use sales and promotion mechanisms. Try to lower product prices or offer a subscription plan, multi-packs, or a loyalty program that generates discounts.
Greater market shares can also be obtained by improving the product - a larger range, more detailed descriptions, availability of sizes, colors and variants. Improving customer service through various communication options, returns policy, personalized communication, order processing times, payment methods, new distribution channels and more. You can also think about acquiring a competitor. Acquisitions can quickly increase your market share and attract new customers. Who is the market penetration strategy for? This strategy can be useful for established companies that want to expand but don't have a pressing need to expand beyond their niche. It can also be helpful for startups that want to expand but don't currently have the resources to expand beyond their existing target markets.