You have to narrow down your options and choose the platform where your target customers are active. It's safer to stick with something that you and your customers already know than to venture into untested territory. Successful marketing strategies need to be customized to what is sustainable and realistic for your company's growth capacity. Develop the strongest idea possible, and revisit your product development strategy throughout the long process. If a marketing strategy has to do with distribution, examining the costs of different distribution methods will help determine if the strategy should be implemented. It helps you to focus on various elements and factors that would impact your entire marketing strategy. The goal and objective of every business are to satisfy the needs and requirements of customers. Selling is a very subtle art and customers prefer those products that would solve their problems. The choice is yours. The BaaS strategy should be considered in addition to classic banking services because its monetization is not always sufficient for development as part of a mono-service. Belfast BT2 7ES Your email address will not be published. Considerations about which demographics are likely to respond to which types of traditional marketing can result in more strategic and cost-effective marketing plans. It now also integrates with many other popular SaaS products such as Dropbox, Zendesk, and Zapier to ensure ongoing growth and user adoption. Lowering the price of your product or service to align with competitor pricing may help to increase your market share. There are four main growth strategies that businesses can use to increase their market penetration: product development, market development, diversification, and acquisition. The key to a market development strategy is the understanding of the current baseline performance vs. what we want our future performance to be, and then coming up with the strategy to move from A to B. If you are developing a strategy campaign, then you should keep in mind its pros and cons. Becoming technologically fresher and starting the transformation process of the core business, thus creating a startup atmosphere. Advantages of Market Penetration Strategy. The strategy that is more attractive for one group may not be interesting for another group. French bank Socit Gnrale recently acquired FinTech Shine for a rumored 100 million in order to offer a full online service to its business customers. Lastly, time consumption is another disadvantage of Nike's "just do it" campaign. For a better understanding, if the large number of your customer base becomes familiar with the cheap product, its highly possible that everyone will forget that the firm also produces luxury items. While the . If you find out some emerging segments in your market, then you should carefully consider these points; A new demographic market means studying a specific segment of the population and targeting it. Other than that, hes a fun loving person. The market development strategy helped Poached Jobs to stabilize its growth and focus on the current market one at a time. New products come. Unmet Production Costs Its not always possible to lower the product price as you will. First, businesses need to identify their existing customers and understand their needs and wants. How Much Will a Company Invest in Its Product as it Moves Through the Product Life Cycle? You realize various new uses of your products and then promote them among the customers of your existing market. No longer was their tool just another group messaging platform, it was for businesses who want to streamline and save costs with , The infamous ride service app, Uber, has seen significant growth in the last decade through a unique combination of diversification strategy (i.e. Lowering Industry Prices Market penetration strategy can harm the entire organization. Facebook started as a small platform for college students where they could share their headshot and check out who is more attractive. This can be done through coupons, sales, and special promotions. Coca-Cola has also employed several pricing strategies to attract new customers and maintain its market share. In many cases, if the marketing strategy has more advantages than disadvantages, this strategy could be implemented. Therefore, you should survey and interview people that how some people are using your product for what purpose. The platform keeps on growing with its existing product. Effective growth. Here are some of the disadvantages of targeted pricing: Errors introduced during the process of calculating the ultimate selling price can impact the rest of the marketing plan. This could involve adding new functionality, improving the design, or increasing the quality. Will you create a new product? Advantages of a Marketing Strategy Maintain Focus When you have a bunch of tasks fighting for your attention, it's easy to lose focus. Suggest new uses for your existing product. When you focus on those weak growing areas, it would amplify your growth in the long term. Market Share can be increased through initiatives such as price cuts, promotions, and marketing campaigns. An entrepreneur must examine each marketing strategy and weigh their benefits and costs. Today, well discuss the advantages and disadvantages of marketing strategy. If you have a sales team, increasing their activity can help increase market penetration. Social media and digital marketing campaigns allow you to precisely target your customer market. The NBA has always dominated the relatively large and lucrative market for professional basketball here in the United States, but the league also had the foresight to recognize how much more lucrative business could be if they could successfully bring their product to international markets. Market Development is best used when a business wants to expand into new markets. August 10, 2019 By Hitesh Bhasin Filed Under: Marketing. Are they going to benefit from your offer? The bank builds an architecture that allows various businesses to offer their services to the bank's clients in its app on a partnership basis and integrates them through an API. Humans are curious creatures that are exceptional at being creative and improvising with tools to get the job done, so how you think your product is being used may not be entirely correct. 1. Increasing your advertising budget can help you reach more potential customers and increase brand awareness. You need to adjust your campaign for different cultures, and it is not easy sometimes. It may catchy and interesting to discuss knowing the needs and wishes of customers. Poached Jobs is an online recruitment platform, it provides reliable talented candidates to businesses, companies, and managers. So, the results can be severe because competitors might end up selling their products at an extremely low price and generate almost no profit. Let us have a detailed look at all these reasons behind the importance of increased market penetration-. Executing successful marketing strategies often takes time, money and resources and for a small company especially, that can be frustrating. Selecting the right media platform to launch your campaign is the key to the success of your campaign. She does one-on-one mentoring and consulting focused on entrepreneurship and practical business skills. Thus, the development efforts of the organization are focused on characteristics that are most widely demanded. You cant run the same advertisement campaign across the world due to cultural differences. The population of the US accounts for approximately 4.25% of the world's total population.. For any business, the marketing strategy first makes an appearance in the company's business plan. All of your investment and time consumption would go to waste due to one factor. The new market may be a foreign market. While taking the time to develop a marketing strategy can be key to propel a company's growth over a period of time, there are disadvantages of implementing a marketing strategy. When you're just starting out, watching your company grow organically and making decisions based on what you learn can be just as beneficial. However, marketing strategy offers you a layout to best approach your audience and their needs and wants. Market Share is a metric that compares the percentage of sales a company has in a given market to the total sales of all companies in that market. Its critical to check your market penetration regularly to detect any changes. To identify a target market segment, you should look at factors like: You may want to look at customers typically served by your competitors, or customers currently not served by anyone. At the same time your business is scrambling to come up with the next exciting product that your customers will embrace, your competition is also working hard to solve the same problems. Have you ever used market penetration to grow your business? Uber is an online ride-sharing platform. The NBA invested significant resources and years of negotiations to lay the foundation for bringing the NBA to China, and in 2008 their hard work paid off. Product Life Cycle Analysis & Price Strategies, Disadvantage of Entering a Mature Market Economy, The Effects of a Change in Business Environment on Strategic Planning, Advantages and Disadvantages of a Marketing Strategy, Brandon Gaille: 8 Pros and Cons of Product Development, This Matter: Research and Development: Advantages and Disadvantages, On Strategy: How to Choose a Market Development Strategy, Australia Unlimited: Market Entry Strategies. One of the most common ways to increase market penetration is by lowering the price of a product or service. It's a clear signal to investors that the bank is developing its digital services. It also targets prospective buyers in new segments or new niches. Most recently, Liz has been writing about accountants working in the cannabis industry on CPA Trendlines and reporting on cannabis trends for Southern Oregon Good Herb magazine in Oregon. Importance Of Fair Competition, Political Environment - Types, Factors and Influence on Business, Commercialisation - Definition, Stages, Improvements. If your market strategy involves social media marketing, then it is easy. In articles about the banking industry over the past year or two, authors often talk about the necessity of implementing big data, AI and quantum technologies. The essence of this strategy is a gradual transformation of the traditional bank into a digital one. Integrated marketing is an approach that uses multiple channels to reach customers. But in reality, it is highly difficult and time-consuming. Disadvantages of Market Penetration Strategy. All of these techniques would make customers switch their brands. But they would impact maximizing your growth, sales, and pricing models. 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