In terms of basic Marketing, what are the four strategies for growth?

The value of each business increases when there is growth in a business but this only happens when appropriate strategies are implemented.

There are four common growth strategies known as diversification, market penetration, market expansion and product development.

Explanation:

Diversification

This is the far reaching strategy of growth in which the business makes a brand new product for a new market.

It has high level of uncertainty which makes it much risky that other strategies. There is a high chance of not succeeding however the benefits are to high if it succeeds.

Market penetration

In this strategy no new product is made or new market reached but the marketing of the oginal existing product is intensified.

This involves product or service discounts in order to attract more customers.

Creating loyalty card to offer discounts to loyal customers.

Market expansion development

A new market area is used to get the existing products and services to the customers for example moving a business to another town or another country in order to reach out more customers who may not be familiar with these products and services.

The business can also form partnership with another business which also uses the product that they sell for example a bakery shop may partner with a bread and breakfast business to produce bread for them this expands the market for the business.

Product development

This means introducing another product to sell within the same business like a business that sells ice cream at the beach may also start introducing sun screens as another product that they sell. They still going to sell these to the same customers without trying a new market.