Product/Market Expansion Grid Flashcards

Questions and Answers

What is market penetration?

Growth by starting up or acquiring businesses outside current products and markets

Company growth by increasing sales of current products to current market segments without changing the product (correct)

Growth by offering modified or new products to current market segments

Growth by identifying and developing new market segments for current products

What is market development?

Growth by starting up or acquiring businesses outside current products and markets

Growth by increasing sales of current products to current market segments without changing the product

Growth by offering modified or new products to current market segments

Growth by identifying and developing new market segments for current products (correct)

What is product development?

Growth by increasing sales of current products to current market segments without changing the product

Growth by starting up or acquiring businesses outside current products and markets

Growth by offering modified or new products to current market segments (correct)

Growth by identifying and developing new market segments for current products

What is diversification?

Growth by starting up or acquiring businesses outside current products and markets Signup and view all the answers

What is the product/market expansion grid?

A portfolio planning method used to identify new growth opportunities Signup and view all the answers

Give an example of starbucks in the context of company growth.

Starbucks is good at growing new products and existing products. Signup and view all the answers

What is an example of marketing penetration?

Free wifi at Starbucks and mobile order and pay app Signup and view all the answers

What is an example of product development?

Starbucks seasonal flavors and double shot energy drinks Signup and view all the answers

What is an example of diversification?

If Starbucks started selling clothes Signup and view all the answers

Study Notes

Market Penetration

Growth strategy focused on increasing sales of existing products in current market segments.
Involves adjustments in price, place, or promotion without altering the product itself.

Market Development

Growth strategy aimed at identifying and cultivating new market segments for existing products.
Can involve targeting new geographic or demographic markets.

Product Development

Strategy centered on introducing new or modified products to current market segments.
Focuses on creating innovations or enhancements for existing customer bases.

Diversification

Growth approach that involves launching or acquiring businesses in areas outside the current product and market focus.
Targets both new products and new markets for expansion.

Product/Market Expansion Grid

A strategic portfolio planning tool utilized to uncover and evaluate potential growth opportunities.

Example: Starbucks

Notable for successfully growing both new products and existing offerings.
Demonstrates versatility in market strategies and product development.

Example of Market Penetration

Implementing free Wi-Fi in stores encourages customers to remain longer and increases sales.
Mobile order and pay app enhances customer convenience and boosts transaction volume.

Example of Product Development

Seasonal flavor offerings and new product lines, such as double shot energy drinks, keep the brand innovative and appealing.

Example of Diversification

Hypothetically, if Starbucks expanded into selling clothing, it would represent a move into an entirely new product category and market.

Description

This quiz provides flashcards on the Product/Market Expansion Grid concepts. Gain a better understanding of market penetration and market development strategies. Ideal for students of marketing looking to enhance their knowledge of growth strategies in business.