Questions and Answers
What is market penetration?
What is market development?
What is product development?
What is diversification?
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What is the product/market expansion grid?
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Give an example of starbucks in the context of company growth.
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What is an example of marketing penetration?
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What is an example of product development?
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What is an example of diversification?
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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.
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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.