Defining B2B Market Penetration Strategy
What is a market?
A market is a defined group of prospects or targets that are thought to have a common potential interest in a product or service, have the means to purchase and are not restricted from purchase in any way.
A Strategy is just a plan to achieve an objective.
In marketing terms “penetration” means to acquire a portion of a market. That is, you “penetrate” a given market through a combination of inbound (website, PPC, etc.) and outbound (trade shows, Email, direct mail, etc.) tactics.
In today’s world, to “penetrate” a market means to gain significant mind share in that market. They know who you are, they understand how you can solve their problem, and the have a certain degree of trust in your ability to deliver on your promises.
Fundamental Market Penetration Strategy
Get some market share or get more market share. But how?
- Sell more existing products or services to existing customers
- Sell existing products or services more frequently to existing customers
- Sell more existing products or services at higher prices to existing customers
- Sell new products or services to existing customers
- Sell new products or services often to existing customers
- Sell new products or services at higher prices to existing customers
- Sell existing products or services to new customers
- Sell new products or services to new customers
Risks of Various Market Penetration Strategies
Each approach has some inherent risks:
A market penetration strategy then is just a plan to acquire revenue from a defined market.
Market Penetration – Marketing Mix for Acquired Revenue
There are a variety of ways you can acquire more revenue with the tactics defined above:
- Price – Discounts, sales, etc. (not the best approach)
- Promotion – Special promotions
- Placement – Special placement of promotions (usually web-based)
- Product improvements/updates – Updated/enhanced products, such as the latest iPhone
Also, you have a variety of ways you can reach your market:
- Website improvements to focus more on lead capture
- Lead nurture strategies based on actual user behavior
- Offers and assets targeted to specific buying process stages
- List segmentation to deliver more targeted and relevant information and offers
Adjusting and blending of the components above is the most essential form of market penetration strategy. You adopt a strategy that says “if I mix the four elements in this way I believe I’ll get more market than my competitors”.
More About Risk
Typically more risk is required for more profit. Major changes in your market penetration strategy can bring about growth or destruction.
Strategy for Penetrating a Market First; Then Tactics
Marketing Automation, direct marketing and so on are just tactics. Most companies start with the tactics and never get around to a coherent strategy. Hope this is true of all your competitors.
Are you ready to enhance your market penetration strategy? Contact Eric at 503-635-2319