Developing Growth Strategies

Companies should always be looking towards the future. One useful device for recognizes growth opportunities for the future is the product/market expansion grid. The product/market expansion grid is a portfolio-planning tool for recognises company growth opportunities through following:

1). Market Penetration-making more sales to current customers without changing products in any way. Market penetration means attempting to increase sales of a firm's current products in its current markets probably through a more aggressive marketing mix. The firm can try to strengthen its relationship with customers to raise their rate of use or repeat purchases, or attempt to attract competitors' customers or present nonusers.  New promotion appeals alone cannot be effective. A firm may need to insert a home page on the Internet to make it simpler and faster for customers to place an order. Or, it can need to add more stores in current areas for greater convenience.

2). Market Development-a scheme for company growth by recognizes and developing new markets for current company products (instance, demographic markets). Market development means attempting to increase sales by selling current products in new markets. Firms can try advertising in different media to reach new target customers. Or they can add channels of distribution or new stores in new areas, by including overseas.

3). Product Development-a scheme for company growth by offering modified or new products to present markets. Product development means offering new or improved products for current markets. By knowing the current market's needs, a firm can see new ways to satisfy customers. Computer software firms as Microsoft boost sales by introducing new versions of well-liked programs.

4). Diversification-a strategy for company growth by beginning or acquiring businesses outside the company's present products and markets. Means of diversification is moving into absolutely different lines of business perhaps completely unfamiliar products, markets, or even levels in the production-marketing system.