If you’re a small business owner, some of the most effective marketing strategies to grow your business include premium offers, unique products, frequency card programs and penetration pricing.
While the title might imply that you’re offering a product at a higher price, the basic principle is allowing customers to buy multiple products at a lower price rather than buying the single product at a higher price. An example of this would be if you offering a 6-pack of Coca Cola at $3 and get another 6-pack of Coca Cola free instead of just buying the 6-pack at the same price.
Companies use this tactic to drive up their average sales per customer. You can offer this type of deal for any product really but obviously it would differ depending on the actual product.
Coming up with new products and services that are different from your competitors gives you a firm edge on increasing your sales and growing your business to be on top of your industry. The biggest benefits are that through product differentiation, you’ll be able to have a niche that may increase profit and boost your customer base. Of course you’ll need highly skilled personnel with strong marketing skills to pull it off but it doesn’t mean it’s impossible without it.
Do your research—be prepared and find a way to be different from your competitors. You’re not just another business for customers to choose from—you’re THE business they choose.
This one is targeted towards your current customer base and will reward them for coming back, again and again. You may target newer customers through advertising—showing them that through their spending, they’ll be able to be rewarded and in the long run, benefit! Walgreens, CVS, and Winn-Dixie are companies who you’ve probably acquired a rewards card through. All of which are free to get and have benefits from jump street. This is an incredible marketing tool to show your customers you care and reward them for being… them!
Say you want to penetrate a new market rapidly but offer the same products as all of the present competition—how do you make a dent in the market? One idea is to do what’s called Penetration Pricing Strategy. Basically, you’re offering your products at a relatively lower price—hoping that you will be able to increase your customer base quickly!
It’s best usage would be with products that have a wide appeal to the masses—the reasoning being that the effects of the strategy are temporary. If you’re looking to increase your market share or just increase the percentage of your total sales, it’s all in the pricing.