Marketing
Marketing Growth Strategies
Marketing growth strategies are plans and tactics implemented by businesses to increase their market share, customer base, and overall revenue. These strategies can include market penetration, product development, market expansion, and diversification. By identifying and leveraging growth opportunities, companies can strengthen their competitive position and achieve sustainable business growth.
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11 Key excerpts on "Marketing Growth Strategies"
eBook - ePub- Erica Olsen(Author)
- 2011(Publication Date)
- For Dummies(Publisher)
How do we get there?Keep these key points on growth in mind as you move through this chapter:Growth begins with your customers in mind.Growth focuses on opportunities.Growth looks forward by learning from the past.Everyone can grow.Growth comes from either leveraging your market knowledge or leveraging your product knowledge. Figure 10-1 illustrates how you can leverage your market and/or product knowledge to create four different strategies:In Part III of this book, you identify your strengths, weaknesses, opportunities, and threats. If you’ve covered that information, use it to guide your strategy selection in this chapter.Market penetrationProduct developmentMarket developmentInnovationFigure 10-1: The four squares of growth.Market penetration
The most common growth strategy is to focus on what you do best by emphasizing your current products in your current markets. This strategy is also called the concentrated growth strategy because you’re thoroughly developing and exploiting your knowledge and expertise in a specific market with known products.How do you grow if you’re doing what you’re already doing now? Here’s how:Increase present customers’ rate of use: You achieve this goal by•Increasing the size of purchase •Maximizing the rate of product obsolescence •Finding new uses for your product •Advertising other uses •Offering incentives for increased useAttracting your competitors’ customers:
eBook - PDFMarketing for the Nonmarketing Executive
An Integrated Resource Management Guide for the 21st Century
- Norton Paley(Author)
- 2000(Publication Date)
- CRC Press(Publisher)
Growth Strategies (Section III in Figure 9.1) are divided into two categories: internal and external. For example: Internal strategies — These strategies relate to marketing, manufacturing, 196 Marketing for the Nonmarketing Executive R&D, distribution, and pricing. They also cover existing and new products, market research, packaging, customer services, credit, finance, sales activities, and organi-zational changes. External strategies — These refer to such possibilities as forming joint ventures, soliciting licensing agreements, identifying new distribution networks, reaching emerging market segments, and creating fresh opportunities for diversification — that is, if diversification fits the company’s strategic direction. As a general planning guideline, however, try to develop multiple strategies for each objective. In cases where you have broader, longer-term objectives, generalized strategy statements may be of use, for example: “form a committee to investigate a market segment,” or “hire an outside consultant to conduct a feasibility study about a new product technology.” Example of Growth Strategies Continuing with the auto parts manufacturer case: Internal Strategies • Install a computerized ordering program that links the top 80 distributors’ inventories with independent repair shops. • Complete the upgrade of the Memphis depot and launch just-in-time de-livery service to distribute within 325 miles of the facility. • Execute a new warranty administration program that is equitable to the company, distributors, and end-user customers, with a timing of 15 days for claims disposition, compared with the current 21 days. • Implement a quality improvement initiative consisting of continuing-edu-cation programs. Also establish indices of performance levels in accor-dance with new corporate objectives. External Strategies • Establish quality teams to review causes of errors and recommend correc-tive action.
eBook - ePubEnterprise Growth Strategy
Vision, Planning and Execution
- Dhirendra Kumar(Author)
- 2016(Publication Date)
- Routledge(Publisher)
Figure 4.2 . Each business has to analyze these alternatives for their growth potential, allocation of business development time, other resources and budgeting process to achieve their market growth goals. The next step is to implement the market growth strategy.Implementing the market growth strategy Businesses need to recognize the difference between marketing and sales. The Whetstone Group (2005) has developed a qualitative graph (Figure 4.3 ) which shows how marketing and sales efforts work together to produce business growth. The marketing group must first be engaged in the market to position the business to generate orders and the sales activity must begin and continue through the sales cycle. It is important for any business that does a lot of direct mail to do follow-up: set up appointments and have face-to-face contact with prospective customers to begin the sales cycle. Do not try to get into sales without having done the marketing.Figure 4.2 Market growth – alternative matrix Figure 4.3 The qualitative relationship between marketing and sales activities4.1.2 CHARAN’S APPROACH TO MARKET GROWTH
Charan (2004) outlines his approach and points out that for many businesses growth is about ‘home runs’ – the big bold idea, the next new thing and the product that will revolutionize the marketplace. Even though these ideas are great, home runs do not happen every day and frequently come in cycles. A sure and more consistent path to profitable revenue growth is through ‘singles and doubles’ – small day-to-day wins and adaptions to changes in the marketplace that build the foundation for substantially increasing revenues. The impact of singles and doubles can be very significant. They are the basis for sustained revenue growth as well as the foundation for home runs. Singles and doubles provide the discipline of execution which is an absolute necessity for successfully bringing a breakthrough technology to market or implementing a new business model.
eBook - PDF- William D. Bygrave, Andrew Zacharakis, Sean Wise(Authors)
- 2015(Publication Date)
- Wiley(Publisher)
Entrepreneurial companies, more so than mature businesses, must constantly re-evaluate their strategy and how it is affecting growth. Marketing Skills for Managing Growth It is beyond the scope of this chapter to offer a comprehensive discussion of the next step: the marketing processes and capabilities a young company needs in order to pursue strong growth. However, two key areas for you to focus on are understanding and listening to the customer and building a visible and enduring brand. Understanding and Listening to the Customer Although intuition-based decision making can work well initially for some entrepreneurs, intuition has its limitations. Entrepreneurs must be in constant touch with their customers as they grow their companies. When a company decides to introduce its second product or open a new location, for example, it needs to be able to determine whether that product or location will be welcomed in the marketplace. Entrepreneurs with a successful first product or location often overestimate demand for the second, sometimes because their confidence encourages them to rely too heavily on their own intuition. Entrepreneurs must obtain information that will allow them to understand consumer buy- ing behaviour and customer expectations related to product design, pricing, and distribution. They also need information about the best way to communicate with customers and influence their actions. Finally, they need information about the effectiveness of their own marketing activities so they can continue to refine them. Marketers build relationships in part by using information to customize the marketing mix. Good entrepreneurial marketers do whatever it takes to build relationships with customers. As marketing goes through customization to reach an intended audience, so too does the actual product. As mentioned in Chapter 3, pivoting a product’s functionality, purpose, or method of use is essential in seeking a product–market fit.
eBook - PDFCustomer Relationship Management
Strategic Approaches in Digital Era
- Joao Heitor De Avila Santos(Author)
- 2019(Publication Date)
- Society Publishing(Publisher)
A business that sticks to its chosen product in the market is more capable of gaining from technology and market information and can therefore, minimize unrelated diversification risks. Concentrated growth strategy has to be successful when it is grounded in the firm’s use of better insights from its technology, consumer, and product to maintain its competitive advantage. 1.8.4. Market Development Strategy Pearce and Robinson (2000) observed that market development strategy is a combination of marketing the current products with decorative modifications to consumers in a market by using distribution channels or by using a different approach in its promotion and advertising content. Businesses that open new offices in new locations are involved in market development. Market development is also practiced when advertising is done in newspapers and not the traditional trade publications to. Market development gives a firm that capacity to practice concentrated growth through the identification of new users of the existing product and new markets based on new demographics, new psychological approach, and new markets in new locations.The use of a different media approach, promotional approach and distribution are what is needed to initiate market development strategy. 1.8.5. Product Development Strategy This strategy involves the use of a significant modification of an existing product or creating new products that are related to the existing one and can be sold to the market through the existing distribution methods. Product development strategy is usually adapted to extend product lifecycle or to exploit the positive reputation that a product enjoys in the market. This is done to attract the already satisfied customers to use new products based on their previous experience of enjoying the initial business product. Product development relies on the insight of the existing market by integrating modifications on products on an already existing product line.
eBook - ePubStrategic Marketing
An Introduction
- Tony Proctor(Author)
- 2014(Publication Date)
- Routledge(Publisher)
Similar techniques can be used to increase the quantity used on each occasion, e.g. reminder communications and incentives.MARKET DEVELOPMENT STRATEGY
Finding new markets does not guarantee long-term or short-term profitability but economies of scale in producing for the market or in supplying the market will contribute to profitability. However, there may well be barriers to entry to the market which means that neither short-run nor long-term contributions to overall profitability are attractive.A logical avenue of growth is to develop new markets by duplicating the business operation, perhaps with minor adaptive changes. In the case of market expansion, the same expertise and technology and sometimes even the same plant and operations facility can be used. There is thus potential synergy and resulting reductions in investment and operating costs. Of course, market development is based upon the premise that the business is operating successfully.Geographic expansion may involve changing from a regional operation to a national operation, moving into another region, or expanding to another country. A firm can also grow by reaching into new market segments. There is, of course, a variety of ways to define target segments and hence growth directions. A key to detecting new markets is to consider a wide variety of segmentation variables. Sometimes looking at a market from different perspectives will uncover useful segments:■ usage : the non-user can be an attractive target■ distribution system : new markets can be reached by opening up additional distribution channels■ age : pulling in additional age categories in the population (consumer goods).A key to detecting new markets is to consider a wide variety of segmentation variables. It is especially useful to identify segments that are not being well served. In general, segments should be sought for which the brand can produce value.GROWTH INTO INTERNATIONAL MARKETS
Many firms engage in international marketing activities. The reasons for this vary and we will explore these below. There are also several different ways in which firms can become involved in international marketing. These approaches can range from supplying goods to intermediaries in the home market who then arrange the shipping of the goods to various overseas markets to actually setting up in business in other countries to undertake production and/or marketing activities.
eBook - PDF- Dawn Iacobucci(Author)
- 2021(Publication Date)
- Cengage Learning EMEA(Publisher)
285 Marketing Strategy Strategy can mean a lot of things, so we’ll begin by discussing business and marketing goals, and then we will look at several approaches to thinking about marketing strategy. We’ll assess our company’s current standing and what it will take to achieve our goals. Then we’ll consider measures to evaluate the extent to which we’ve been successful at doing so. 16-1 Types of Business and Marketing Goals 16 Learning Objectives After you have finished this chapter, you should be able to: LO 16-1 Describe how marketing goals contribute to business strategies LO 16-2 Discuss classic and standard frameworks for thinking about strategic choices LO 16-3 Develop plans to begin to execute a marketing strategy LO 16-4 Identify the various metrics used to assess the strategy’s effectiveness 5Cs Customer Company Context Collaborators Competitors STP Segmentation Targeting Positioning 4Ps Product Price Place Promotion M anagerial Checklist • What types of business and marketing goals are there? • What is marketing strategy? • How do we “do” strategy? • What are the key marketing metrics we want on our dashboard? DEFINITIONS FROM DICTIONARY.COM ● ● Goal : The purpose toward which an endeavor is directed; an objective ● ● Objective : Something that one’s efforts or actions are intended to attain or accomplish; purpose; goal; target ● ● Strategy : A plan, method, or series of maneuvers for obtaining a specific goal or result Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 286 Let’s begin by thinking about business very simply.
eBook - PDF- Robert F. Everett(Author)
- 2008(Publication Date)
- Praeger(Publisher)
Market Penetration Strategy Marketing penetration is what most people think of when they think about marketing. It means continuing to do exactly what you are doing, but through advertising and other marketing methods, increasing revenue. There are actually three very different ways you can do this. Increase Sales to your Current Customers This strategy involves increasing revenue from the same customer base. For example, if they are coming to your restaurant once per month, encour- age them to come twice per month. Figure 10.1 The Intensive Strategy Matrix Deciding on Your Marketing Strategy 109 One common way to do this is with frequent customer programs. Many years ago, the airlines started to offer special perks to people who would often fly on their airline. Free flights, upgrades to first class, free drinks, and mem- bership in their airport club were among the benefits of using that airline. Many retailers use similar strategies. Chico’s, for example, offers every- day discounts to preferred customers as well as frequent special coupons in the mail and invitations to sales events exclusively for these frequent cus- tomers. Staples and Office Max send me coupons and gift cards on a regu- lar basis. Charlie Brown’s Steak House sends me $20 coupons every time I accumulate a certain amount of ‘‘points.’’ Many large corporations use this as their primary strategy. Top salespeo- ple are assigned to single accounts with the goal of continuing to develop business with that one customer. Several of the large technology companies I have worked with have told me that as much as 70 percent of all new business growth comes from the same set of customers. Even without implementing these kinds of programs, there is a great deal that an entrepreneur can do to encourage customers to buy more. Sim- ple techniques include: . Asking what else you could do for them .
Available until 4 Dec |Learn moreStrategic Marketing
An Introduction
- Tony Proctor(Author)
- 2002(Publication Date)
- Routledge(Publisher)
twelveGROWTH
STRATEGIES:
PRODUCT-MARKET
EXPANSION
INTRODUCTIONStrategic windows are dynamic entities that change over time. They represent opportunities in which it is possible for the organization to increase sales both in volume and cash. A firm can have more than one strategic window open at a time and these may be related to the different types of growth strategy that an organization can pursue.This chapter examines the strategic alternatives that are available. Essentially this involves the various strategies outlined in the well known Ansoff mat r ix (market penetration, product-market expansion and diversification) along with ver tical integration strategies. The chapter explores the rationale behind these strategies.The importance of new product development is explored and causes for failure in exploiting new product opportunities are examined. Ways of screening out winners and losers in terms of new product opportunities are considered. Leading on from new product development, diversification is highlighted as an important strategy in the search for new strategic windows. An alternative strategy of vertical integration is also explored.GROWTH STRATEGIES
Figure 12.1 Ansoff matrixAnsoff’s product-market expansion grid provides a useful though not exhaustive framework for looking at possible strategies to cope with the problem of strategic windows and finding ways of creating overlapping strategic windows. All four of the strategies suggested by Ansoff are discussed below along with others.MARKET PENETRATION STRATEGY OF EXISTING MARKETS
Here the strategy amounts to increasing sales of existing products while at the same time trying to maintain current margins of profitability on sales. When the market is expanding this may be accomplished with nominal outlays of marketing expenditure by getting more first-time users to buy the product or to increase product usage of existing buyers or to increase the frequency of use. In a saturated market, extra sales may only be generated as a result of increased market share. Another possibility, however, is to promote new applications for existing product users. Such new uses can best be identified by market research aimed at determining exactly how customers use the brand.
eBook - ePub- Colin Egan, Michael Thomas(Authors)
- 2010(Publication Date)
- Routledge(Publisher)
Irrespective of the debate surrounding the value of the PLC concept, companies do need to launch new products and to manage them through periods of sales growth, maturity and decline. Strategies for innovation are addressed in the next chapter. In the remainder of this chapter a range of strategies for the PLC stages of growth, maturity and decline is discussed. It should be noted that while some of the strategies are mainly appropriate for one particular stage, most can have applications in two or even three of them depending on the conditions involving the factors discussed in the previous section.Market Expansion StrategiesThis option is the most appropriately deployed in the growth stage of the PLC. However, it also has useful applications during maturity for firms that are able to identdy new segments. The strategy can involve attracting new customers into the market, building the usage rates of existing customers or exploiting new applications for the product.Targeting new Customers ________________ This involves serving new segments. Various approaches can be adopted:• Geographical expansion: this can be attempted by targeting new countries. For example, international growth has been successfully pursued in recent years by many retailers including Aldi (Germany), Benetton (Italy), lkea (Sweden) and Dixons (UK). Alternatively, geographical expansion can occur within a country as shown by Asda and Scottish and Newcastle Breweries in their drives into southern regions from their strongholds in northern England.• Targeting later adopters: customer segments seldom enter a market simultaneously. Rather, their entrance is spaced out over time as their needs develop. For example, successively newly paired young couples enter the housing market sequentially. Alternatively, incompany marketing training has occurred for several decades in the UK. However, firms such as IBM United Kingdom and APV had other training priorities until recently and only began to buy marketing courses as their needs for them became apparent in the 1990s
eBook - PDF- David A. Aaker, Christine Moorman(Authors)
- 2023(Publication Date)
- Wiley(Publisher)
266 Part Three Managing Marketng Strategy for Growth coming decades. They realize that success will involve significant investment in logistics, distribu- tion infrastructures, and organization building and adaptation. Chapter 15 will elaborate on how this occurs in global markets. OFFERING EXPANSION Growth can also happen by staying with existing customers, but improving existing offerings or expanding the offerings a company tries to sell them. The advantage of this strategy is that the company can learn from existing customers about the “pain points” in its current offerings, which competitive products inside and outside of the category they are using, and what other jobs may still need to be done. Improve Competitive Profile of Existing Offerings This strategy takes a hard look at the company’s existing offerings relative to competitors to iden- tify opportunities to catch up to parity levels or to leap ahead. Ginger Hotels, a division of the Tata Group of India, decided to double down on the comfort of the bed in its chain of hotels targeting business travelers. Above average investments on this dimension allowed it to stand out. Orangetheory Fitness leveraged technology to help it stand out among its many competitors in the crowded fitness space. Recognizing that everyone’s fitness journey is different, Orangethe- ory helps individuals measure effort levels throughout workouts by using personal heart rate monitors. Unlike traditional fitness classes, the goal of Orangetheory workouts is not simply to complete a specific number of reps, but rather to exert a high level of effort that is calcu- lated based on an individual’s heart rate and age. By combining science, technology, coach- ing, stimulating the mind, and tracking results during the class, Orangetheory breaks the mold of impersonal, intimidating group classes and instead created a fun, personally-fulfilling gym environment that many love.
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