Product Market Expansion Grid Quiz & Flashcards

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.