Market penetration is critical when you are planning and developing your business. Market penetration means figuring out the type and number of clients you need to meet revenue goals. Your market penetration techniques have to include the types of businesses in your geographic location.
You can’t randomly select a market penetration strategy; it has to be based on research of area businesses and the number of businesses of a certain size and type in that area. You can then target your market penetration technique to match the results.
GEOGRAPHIC MARKET PENETRATION: RESEARCH
When you are considering the type of customer you need to meet your revenue goals, set up a grid to track the type and number of businesses based on geographic location. Take the following steps:
1. Put your business in the middle of a grid.
2. Move out in concentric rings further from where you are located.
3. Determine what businesses are 15 minutes away and then keep going farther, not extending beyond 90 minutes. You need billable hours, so you can’t go too far outside your ring.
4. What are the different size levels of the businesses in your area?
5. How many businesses with one to 10 employees and $100,000 to $1 million in revenue are within 60-90 minutes.
6. How many of the sweet spot clients are within 15 minutes and beyond, up to 90 minutes of your location?
7. Track large small businesses with 50 to 200 employees and 50 to 100 computers in the same way as above.
The business size information you will need for your market penetration techniques can be obtained through the following places: libraries; economic development or offices that help small businesses; mailing list brokers; internet research; phone inquiries; Dunn and Bradstreet; Zap Date; Info USA.
Added By: Computer Consulting Kit