Views: 4018Importance of Marketing Growth Strategies
Marketing growth strategies are frequently used by numerous companies. It could be great for the strategic development of your business and could outline numerous factors that will help you to be more successful in the market.
Most companies are always concentrated on several important factors, which include products and the market. Without sorting out every little aspect related to them, it would be hard to move forward. You always need to know more about your products, and what you can offer to your customers. Another important aspect is the market, like which market you are in right now and where do you see yourself in the future.
Market Penetration
The main goal of the market penetration strategy is to increase sales of existing products and services which are delivered in specific markets. You can determine the potential market size and increase your market share.
With this strategy, you can ensure that your customers will buy more from you and will use your existing services frequently. Besides that, you’ll have a chance to attract customers who are or were dealing with your competitors.
You can use several ways to achieve those goals. You can decrease the prices of products or services, and increase promotion and distribution support. You can also change your products a bit based on the information that you’ll have about your rivals.
Benefits of Market Penetration Strategy
Marketing growth strategies are frequently used by numerous famous brands, and Nike isn’t an exception. In fact, Nike uses a market penetration strategy very successfully. No matter in which store are you, Nike most like always has a bigger space taken, because retailers know that Nike will always help them sell.
When you are like Nike and have high market penetration, you are seen as the leader in your industry, your brand is well-known, you have good visibility in the market, you have high sales volume, and products and services that you are selling in the market are trusted and well-established.
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Market Development
The main goal here is to increase the sales of products and services in markets, which you haven’t explored yet or weren’t participating in actively. Market expansion is beneficial, but needs good research which will determine how you can make your product or service interesting and successful for the new market. You can explore foreign markets as well.
First of all, consider if the demand for your product or service is high in the new market and how your existing resources can help you to establish your place there. Proper risk management and in-depth market research will help you to sort out everything better.
Benefits of Market Development Strategy
The market development will help you with expansion and will give you a chance to increase your visibility in numerous other markets as well. Also, you’ll have a chance to start operating in different countries. This strategy is beneficial for physical stores and online businesses as well.
For example, Dunkin Donuts is known worldwide. They have almost the same products in every country and are the favorite option for numerous people, but they still try to serve more regional and cultural products when there is a holiday in a specific region. So they are able to get accustomed to foreign markets with everything that they have and make little modifications when necessary to satisfy their customers.
Product Development
Product development is another marketing growth strategy that is mostly focused on launching new products and services in existing markets. You can improve existing products or develop additional products according to your research. Sometimes companies even ask other companies for the rights to produce their products.
First of all, you should know a market need. Products that solve the problems of customers are more successful and appreciated. Determine more aspects of your ideal product, think about what you should be focused on to turn your ideas into reality, create guidelines, and then use them for maximum impact.
Benefits of Product Development Strategy
With a solid product development strategy, you’ll be able to reach new heights. It’s a little bit risky and needs good planning to work successfully, but the results that could be gained are too beneficial to not think about this option.
For example, Netflix started out as a DVD rental platform, but it evolved greatly over time. Netflix evolved alongside the market trends and shifted towards streaming media, and we see now it’s one of the most popular platforms on the market. In this case, it’s clear how Netflix identified a need in the market and developed a product that would address it.
Diversification
The diversification strategy mostly focuses on launching new products and services in previously unexplored markets. This strategy is risky because creating new products for a new market is anything but easy. There are several types of diversification.
Horizontal diversification is focused on purchasing or developing products, which will be sold to existing customers. During vertical diversification, the company gets involved with the sector of its suppliers or customers.
Concentric diversification is related to creating products that will have some technical or commercial similarities to other products. Conglomerate diversification is about products or services that have no relation to existing products or services, but might be appealing to a totally new group of customers.
Benefits of Diversification Strategy
There are numerous benefits that you can gain from this risky marketing growth strategy. For example, you can use horizontal diversification when you are making notebooks and then enter the pen market with new products. If you have a company that does the reconstruction of different buildings, you can start selling construction materials as well, in this case, you can use vertical diversification.
Concentric diversification is frequently used by small producers of consumer goods as well, for example, it could be used by any bakery or restaurant that wants to sell new products. Or let’s suppose that you had a company that was a cement provider, but now you are focused on home décor and electronics as well, it’s what happens with conglomerate diversification.
Also, one of the greatest examples would be Walt Disney, because right now besides the animation business that they were focused on, they have TV broadcasting, live entertainment, theme parks, etc. So based on these marketing growth strategies, you can turn your ambitions into reality.
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