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Existing Products

New Products

Existing Markets

Market Penetration

Product Development

Existing Products

Market development

Diversification

Marketing Exam Study! Growth Strategies/Product-Market Expansion Grid

  • -

    Growth share matrix

    • o

      A portfolio planning method that evaluates a company’s SBUs in terms of their market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs

      • Stars

        • High growth, high share business products, often need heavy investment to finance their rapid growth, eventually their growth will slow and turn into cash cows

      • Cash Cows

        • Low-growth, high-share business or products, they’re established and successful SBUs needing less investment to hold their market share

      • Question Marks

        • Low-share business units in high-growth markets, requiring a lot of cash to hold their share, let alone increase it, should decide to invest or let it die off

      • Dogs

        • Low-growth, low share business and products, may generate enough cash to maintain themselves, but not to be large sources of cash

  • -

    Product-market expansion grid

      • o

        A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development

  • Market penetration

    • A strategy for entering the market with a new product, then focusing efforts on increasing the sales of that product in order to capture market share

  • Product development

    • A strategy for company growth by offering modified or new products to current market segments

  • Market development

    • A strategy for company growth by identifying new market segments for current company products

  • Diversification

    • A strategy for company growth by starting up or acquiring businesses outside the company’s current products and markets

What are services?

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    Services involve a form of rental and non-ownership

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      Meaning access of usage fees for a defined period of time, instead of buying it outright

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    Services non-ownership framework

      • o

        Rental good services – right to a physical good

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