Concept explainers
To determine: The four growth strategies.
Introduction: The method used by the company to expand the business in the domestic market and the global market is known as growth strategies. Growth strategies involve the market penetration, product development, market development and diversification.
Answer to Problem 1PC
The four growth strategies of marketing are product development, diversification, market penetration and market development.
Explanation of Solution
The four growth strategies are explained below:
Market penetration: The aim of the market penetration is to increase the number of sales of the current goods and services in the current market to increase the market share. Thus, to increase the market share, a company has to attract its customer to sell the existing product.
Market development: Market development refers to the expansion of the market. The existing product should be sold in the whole country and foreign market along with the households. It means increasing the sales.
Product development: The objective of the product development is to increase the amount of sale to its customer with the aim to increase turnover. The developed product can be obtained by investing in the research and development.
Diversification: Diversification is the major step of the growth strategy in the market. It is a very riskiest strategy. Under the diversification, new goods and service are introduced in the market for the expansion of the market.
Thus, the four growth strategy of the marketing is diversification, market penetration, market development and product development.
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