When entering a new market, it's important to be aware of the challenges in market penetration you may face. There are many different factors that can affect how successful your market penetration will be.
Having these in mind will allow you to prepare alternative plans and look at other ways to enter the market. Sometimes you don’t have the budget to invest in people with the right market experience, so planning will help your budgets go further and achieve success in your new markets!
What are the challenges of market penetration?
What is the biggest challenge in marketing?
What are the challenges and opportunities of entering the new market?
What are examples of market penetration?
What is market penetration and why is it important for businesses to achieve this goal?
Market penetration is a term used to describe the process of introducing a product or service and building its presence in a new market; whether that’s a new demographic, a new territory or industry. In other words, it refers to the degree to which an offering is able to reach buyers.
Market penetration is especially important for businesses that are looking to grow and expand their reach. By entering new markets and tapping into fresh pools of potential customers, companies can boost sales, increase revenue, and establish themselves as industry leaders.
There are several factors that businesses must consider when trying to achieve market penetration. One key consideration is the target audience for their offerings: companies will need to understand their customers' needs and preferences in order to tailor products accordingly. Additionally, businesses need to have realistic goals and expectations about how long it may take them to succeed in introducing their products to a new market. It can often be a slow and gradual process that requires patience and persistence. But by putting in the time, effort, and resources required, businesses can excel in reaching new markets and experience tremendous growth as a result.
What are some of the challenges experienced during market penetration and how can they be overcome?
Competing in B2B technology sales
In order to successfully penetrate a new market, there are a number of challenges that organisations often have to face. For example, competition within the market can be fierce, making it difficult for new companies to find their footing and establish a presence. You need to figure out how you can differentiate the business and the product - or look at how you can engage in the market differently. Think about how you can use content or events to create a buzz and drive engagement, or perhaps champion an issue in the marketplace.
It’s important to benchmark your competitors with a clear value framework to define what makes you different, and to know who your key partners are in the market. Working with the right partners will help you build traction and gain credibility.
Pricing B2B products
Another common challenge is finding the right balance between pricing your product or service competitively while still ensuring sufficient financial return. It’s important to not to be too aggressive with price but to focus in B2B on where you add value and are a partner to the business. This is where the most value can lie.
It’s important to think culturally too. Every market will expect you to communicate with them differently and this can be the most difficult part when entering new geographies. So too can business behaviour, maybe they don’t have the same issues as your primary market, or maybe they have a different perspective - customer education may play a huge challenge during market penetration.
Media acquisition will take longer too. Make sure you have a strong example customer base and success stories that relate to your market. The more insight others can glean from other businesses, your clients, the more valuable your content to the media. Plan a PR campaign carefully to maximise the impact and investment.
However, with the right approach, these challenges can be overcome fairly easily. For starters, businesses should always be sure to conduct extensive research about their target market prior to entering it. This will allow them to better understand their competitors as well as the needs and preferences of consumers in that specific region or niche. Write a value framework for your marketing and sales teams.
In addition, businesses should leverage both traditional and digital marketing channels as they work to build brand awareness and connect with potential customers. By using tailored messages and strategic campaigns, companies can reach more people at a lower cost per impression than ever before. Know your buyer profiles and build a communications framework and plan.
And finally, it is important to constantly measure performance in order to identify opportunities for improvement and make necessary adjustments along the way. Record results and ensure you determine the most valuable targets that lead to sales.
How do you know if your business has successfully penetrated a new market?
There are a few key indicators that will tell you whether or not your business has successfully penetrated a new market. The first is whether or not you're seeing an increase in sales. If you're selling more products or services in the new market than you were before, then it's likely that you've successfully penetrated the market. Another key indicator is whether or not you're seeing an increase in brand awareness either in recognition, lead generation or partnerships.
To begin gaining traction from the point of initiating planning to seeing results, you’ll be looking at from 3 - 12 months in general for B2B sales.