Product/Market Expansion Grid Flashcards

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.

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.