Types of Markrting Growth Strategies

Market Penetration

One growth strategy in service is market penetration. A little business utilizes a market penetration strategy when it decides to market existing products within the exact same market it has actually been using. The only way to grow using existing products and markets is to increase market share, according to the short article "Growth Methods" at gaebler.com.

Market share is the percent of unit and dollar sales a business holds within a specific market vs. all other competitors.

One way to increase market share is by reducing prices. For instance, in markets where there is little differentiation among items, a lower rate may help a business increase its share of the marketplace.

Market Growth

A market expansion development method, typically called market advancement, requires selling current products in a brand-new market. There a number of reasons a company may consider a market expansion strategy. Initially, the competitors might be such that there is no space for growth within the current market.

Get quality help now
Doctor Jennifer
Doctor Jennifer
checked Verified writer

Proficient in: Business

star star star star 5 (893)

“ Thank you so much for accepting my assignment the night before it was due. I look forward to working with you moving forward ”

avatar avatar avatar
+84 relevant experts are online
Hire writer

If an organisation does not discover brand-new markets for its products, it can not increase sales or earnings.

A little company might also utilize a market expansion method if it discovers brand-new uses for its product. For example, a little soap supplier that offers to retail stores may discover that factory workers likewise utilize its item.

Item Growth

A little business might likewise broaden its product line or add brand-new features to increase its sales and earnings. When small companies use an item growth method, also referred to as product development, they continue offering within the existing market.

Get to Know The Price Estimate For Your Paper
Number of pages
Email Invalid email

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related email

"You must agree to out terms of services and privacy policy"
Write my paper

You won’t be charged yet!

A product expansion growth method often works well when innovation begins to alter. A little business may also be forced to include brand-new products as older ones end up being outmoded.


Development methods in service also consist of diversification, where a little business will offer new products to brand-new markets. This type of method can be really dangerous, according to gaebler.com. A little business will need to prepare carefully when using a diversification development technique. Market research is necessary due to the fact that a business will need to figure out if consumers in the brand-new market will potentially like the new products.


Growth strategies in business can also includes an acquisition. In acquisition, a company purchases another company to expand its operations. A small company may use this type of strategy to expand its product line and enter new markets. An acquisition growth strategy can be risky, but not as risky as a diversification strategy. One reason is that the products and market are already established. A company must know exactly what it wants to achieve when using an acquisition strategy, mainly because of the significant investment required to implement it.

Updated: Jul 06, 2022
Cite this page

Types of Markrting Growth Strategies. (2016, May 10). Retrieved from https://studymoose.com/types-of-markrting-growth-strategies-essay

Types of Markrting Growth Strategies essay
Live chat  with support 24/7

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

get help with your assignment