March 8, 2021 | AtoZ Markets – Market saturation is a struggle that entrepreneurs face when their businesses finally become profitable, and the products they sell become maximized by a particular market place. This is a dilemma for growing companies, or even a big company trying to evolve more since it somehow requires them to surpass their best every time.
Usually, when this time occurs for any business, a company must innovate a better version of the products that bring them revenues or beating competitors in various aspects to spike up their consumer number.
Two types of market saturation
Let’s talk about the first one from the microeconomic view. In layman’s terms, micro is simply the small things while macro talks about bigger things. Market saturation in the micro perspective is when there is no more demand for a product or service from a specific market or consumers. Let’s use handheld phones as an example. The Blackberry phones that used to be a hit became a phone of the past since it became complacent and failed to create innovations, just like Apple Inc.’s newest versions of iPhones are released every year. A very fierce competition beat it.
There is also a macroeconomic point of view– this happens when a maximized product no longer requires a demand. Let’s take a line of refrigerators or washing machines as an example. Their design is so sturdy that they last a very long time, making it almost impossible for consumers to bring it for service, let alone change and buy a new one. This is the main reason why some companies sometimes wear down their most selling products intentionally or even change their models as another resort.
Tips on avoiding and evading market saturation
Creating a company takes many years, patience, and hard work, let alone creating products or models to keep the business high and running. So, it is not easy to give up a company created by blood, sweat, and tears, so others choose to stay and make amends for the market demands. Fortunately, there are various ways to keep a company from insolvency and even increase profits. Let’s list them down:
(1.) Creativitycan be an entrepreneur’s lifesaver. You can list down things, survey, or research everything the current consumers prefer and try to adapt it to your strategy. Better innovation and service offers will surely attract customers.
(2.) Effective cost pricing can significantly affect consumers. You can choose to be the product for the masses or be the product that someone will buy because it is extravagant for the luxurious feeling. This is a critical step for every company experiencing market saturation, but usually, they resort to gravely cutting down their price tag since they need to gain more customers.
(3.) Entrepreneurs can also turn to an effective marketing strategy, especially now in the digital age where everything can be placed and advertised on the internet. It may seem like an unnecessary detail for some. Still, it may be genuinely lacking since no one can appreciate the right product if the information does not reach individual masses.