Build your personal brand and create a network. Become seen as a trusted advisor that people want to do business with instead of a commodity. Either opt for the guerilla-style approach that includes making individual connections through networking and social media groups or use a bigger budget to try to saturate the market with billboards, digital ads, radio ads and other promotional tactics. – Anna-Vija McClain, Piccolo Marketing

People don’t buy price; they buy risk. Products and services become commoditized quite quickly. You will be competing against larger companies and small ankle-biters who compete on price. I would clearly distinguish how you lower the buyers’ risk. Clearly identify how you minimize the personal pain, cost and time of having a poor experience and the benefits of working with you to get it done correctly. – Ron Hubsher, Sales Optimization Group MORE FOR YOU

Whether it’s your product, service, customer experience or all three, look for opportunities to personalize. Study your market to understand the competitive landscape and actively solicit customer feedback to determine individual needs and preferences. Leverage these collective insights to determine how you can create a distinctive mark in your industry. – Amy Phillip, Career Certain

Brainstorm all of the truthful answers to these two questions: “What do I do better than everyone else who does what I do?” and “Among those who do what I do, what do I do that none of them do?” With those two frames, it’s all about creativity. Compete on price, service, selection, value-add, rewards programs, clubs/memberships, joint ventures, events, contests and so forth. Be better and different! – Jeff Klubeck, Get A Klu, Inc.

Get creative with ways to follow up, such as by sending a personal text message or e-card—anything that shows you’re paying attention and that you care about and value their business. Our brains crave novelty, and anything unexpected will pique a customer’s or client’s interest and can lead to referrals and increased loyalty. The best part is, it doesn’t cost a thing! – Susan Sadler, Sadler Communications LLC

You must outbehave the competition! Make sure everyone is living out your organization’s core values and mission. You also want to ensure that any training you implement is strongly aligned with those values and purpose. Customers buy widgets, but they buy them more often from people they trust to do the right thing and from those who will make it right if any mistakes are made. – Johnny Walker, IntegrityATL

Most of us struggle to differentiate our companies from the competition. Get back to the basics and try to understand your No. 1 value proposition to your ideal target customer segment. Then, focus your efforts on increasing the product value and experience you can offer to prospective customers. Finally, leverage your human capital to drive innovations and, ultimately, bring greater value to the market. – Jonathan H. Westover, Utah Valley University & Human Capital Innovations, LLC

What makes your business unique? Find that uniqueness and capitalize on raising awareness about it. Have others (i.e., your customers) help you by speaking for you. It is far easier to gain credibility when your success-story clients share why they do business with you. People seek value. They want products that work, services that make a difference, open and frequent communication and personalization. – Denise Russo, SAP

Saturation is not a diagnosis of elimination. You can easily differentiate by taking your business into different solution areas. For example, if you sell pies, sell them for specific occasions. This isn’t just any pie; it is a “birthday pie.” Apply this logic to anything, including retail. Utilize search engines to determine which words pinpoint your unique market. “Birthdays,” “weddings” and “showers” are popular. – Amera McCoy, McCoy Consulting LLC

Consumers want to support companies that share their values. Embracing the company’s culture and its diverse “why” allows a business to stand out from the competition and attract loyal customers. Charitable causes, philanthropic endeavors and community enrichment are great ways to ingratiate a company to potential consumers and strengthen the corporate mission. – Michael Timmes, Insperity

People buy from people, period. Focus on personal engagement with the company or service. Be the ultimate spokesperson who focuses on your client’s results; promote the people who buy. The pattern here is people, not product! Sharing stories of everyday people will deepen the connection to your company or service, and that draws a crowd every time. – Miranda VonFricken, Miranda VonFricken – Masterminds & Personal Growth Coaching!

Get into the heads of your ideal clients and try to either serve their current needs better or anticipate their future needs to get ahead of your competition. Start marketing more effectively and differentiate yourself based on things that matter to your customer, not just the product or service itself. Apple does this really well with its entire ecosystem. – Dhru Beeharilal, Nayan Leadership, LLC

Product innovation is key. Adding one feature to a product or service can be a differentiator in the marketplace. People purchase products or services for a variety of reasons, and one innovation to a product can develop a whole new stream of revenue for a company. In a saturated market, think of product innovation first. Innovation will always lead to differentiation. – Ken Gosnell, CEO Experience

The client relationship and their experience with you is your biggest competitive advantage. The differentiator is determined by your personal brand and your delivery of a solution that your client is seeking. Characteristics such as authenticity, humility and simplicity will continue to drive a positive client experience and create that memorable connection with you. – Reena Khullar Sharma, Agilis Executive Consulting

People not only buy products, but also value a company’s attitude. At the core of every brand are the values of the company that sells the products. Make these values clearly visible to the outside world, and your customers will recognize who they are doing business with and why. People always buy from people, and this is also true in saturated markets. – Kai H. Simons, Agile Growth Academy GmbH

You need to think about the shortcomings in your competitors’ offering from the perspective of the user. Map out the forces that make people switch between suppliers and identify the triggering events. With the right research, this may allow you to focus on a niche of the market that is currently underserved by current providers. – Andrew Constable, Visualise Solutions

What Does Market Saturation Mean? Market saturation happens when products or services in a particular market are no longer in demand due to multiple offerings by competition or simply less in demand.

Selling in a Saturated Market | Free Sales Training Program | Sales School with Jordan Belfort

Causes of a saturated market

Market saturation can cause companies to struggle financially, so it is important to understand the possible causes. Below are some common reasons a market can become saturated:

New technology

Technological innovation can decrease the demand for older products. For example, the invention of the car eliminated the market for horse-drawn carriages as transportation. Although some people might still rent a carriage for fun, only a small number of carriage businesses could survive the decreased demand.

Increased competition

On both a macro and micro scale, new businesses opening up in the same industry can cause a saturated market. For example, many companies compete to be the main streaming service for watching movies and TV shows online. Once everyone has access to a streaming service, it becomes difficult for the companies to get new customers.

Changing customer base

Changes in the population can also cause market saturation. If people lose interest in a trend, companies have to adapt to lower demand for their products. Businesses within the fashion industry and other markets that rely on trends are often prepared to leave a saturated market for a new one.

What is a saturated market?

Understanding the scope of your market is an important step to overcoming market saturation. Determining what kind of market saturation you are experiencing can help uncover the causes and solutions to your decreased demand. There are two types of market saturation:

Microeconomic market saturation

This situation happens when demand for a particular business disappears. For example, if customers stop coming to your bakery because a new one opened up across the street, you would be in a saturated market on a small scale. Microeconomic market saturation can also occur if a business inadvertently reduces the need for its own products or services among its client base without having enough new clients to take their places.

Macroeconomic market saturation

Market saturation on a larger scale occurs when an entire industry experiences a drop in demand. This can occur due to new technology making a product or business obsolete. For example, the proliferation of cellphones decreased demand for pagers. Macroeconomic market saturation can also occur when other market options already meet the needs of all possible customers.

How to overcome market saturation

Although market saturation can be challenging to a business, there are many techniques you can use to maintain success. Entrepreneurs and companies can adapt to the needs of the customer and continue making a profit. Here are seven ways you can promote your business within a saturated market:

1. Research competitors

Understanding the methods your competitors are using to promote their business can give you an advantage when your customer base is limited. By paying attention to the strategies others use in your sector, you can determine what would work best for your company. Research may also give you an idea of a completely new business plan that will set your product or service apart from others.

2. Create a niche

One of the most important steps to growing your business in a saturated market is emphasizing the unique aspects of your product or service. Creating a niche for your business automatically gives customers a reason to choose your product over similar ones. People choose products that fit their specific needs and will look for what makes your company different.

To impress potential customers, you must find out what makes your business special. For example, if you operate a lawn service but yours is one of the few in your area that also offers pest control, including this in your marketing and branding can help you establish your niche as a full-service home-and-lawn-care business.

3. Price effectively

When business owners realize that their market has become saturated, they often begin lowering their prices to attract customers. This method can be effective but can also cause companies to lose money by trying to have the lowest prices. Another option is to raise prices and aim your services at people who are willing to pay more for a premium product. Customer research can help you carefully decide on a price point that works for your business model.

4. Market your product

5. Innovate and diversify

Diversification refers to expanding your products and services, and innovation is what allows you to diversify. When you innovate, you brainstorm, research and develop new and diverse products or services to offer your customers. This allows you to generate revenue from new sources, which can offset decreased revenue from a product impacted by saturation.

6. Provide customer service

7. Add value

Another tactic for overcoming a saturated market is creating additional products or services to offer. By increasing the value of your product, you give customers another reason to choose your business. Offering incentives like free upgrades or access to special services can make your product more appealing to a buyer.

Examples of market saturation and solutions

Because market saturation can occur on a large scale or a small scale in almost any industry, each business response to a saturated market will be different. You can study the market to decide which methods work best for your product. Below are several example scenarios that a business might face within a saturated market and possible ways the business could stay viable:


Is a saturated market good?

Competing in a saturated market provides a balance in pricing for consumers and helps create a better work environment by pushing companies to remain innovative and conscientious of customer service. It also forces companies to grow, rather than become complacent in the comfort of short-term success.

What happens when a market becomes too saturated?

By definition, a saturated market produces no new demand, because the customer base has been served by the available supply of providers. This means that while you can earn revenue from your existing customer base, your ability to attract new customers is limited.

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