BUSINESS GROWTH STRATEGY The method a company uses to expand its business is largely contingent upon its financial situation, the competition and even government regulation. Some common growth strategies in business include market penetration, market expansion, product expansion, diversification and acquisition. PRESENTATION BY NEW DELHI INSTITUTE OF MANAGEMENT
STRATEGY OBJECTIVES Strategic business objectives are goals deemed most important to the current and future health of a business. Objectives are prioritized by an organization through a thorough analysis of business practices such as a SWOT analysis.
THE ANSOFF MATRIX Ansoff's Matrix is a marketing planning model that helps a business determine its product and market growth strategy.
Market Development
Pro duc
Markets
t and
Diversification Markets
Serv ice
Market Penetration
Product Development
MARKET PENETRATION Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.
Distribution Channels A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.
Sales Staff An effective sales person is someone who can cultivate long-term relationships with your customers, someone who is genuinely friendly, easy to talk to and likable.
Offer Promotion Sale promotions often come in the form of discounts. Discounts impact the way consumers think and behave when shopping. The type of savings and its location can affect the way consumers view a product and affect their purchase decision.
Products A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at a price.
MARKET EXTENSION
Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.
New geographical markets; for example exporting the product to a new country
New product dimensions or packaging: for example
New distribution channels (e.g. moving from selling via retail to selling using ecommerce and mail order)
Different pricing policies to attract different customers or create new market segments
NEW PRODUCT DEVELOPMENT Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.
Product development is the set of activities starting with the perception of a market need and ending in the production and sale of a new product satisfying that need.
Continuous improvement has become an important strategy in improving organizational performance. Unfortunately, product development is often excluded in continuous improvement programs due to the special characteristics of product development activities.
EN
E NC A H
NT E M
CR EA T
IO
N
DEVELOPMENT
IM P
RO V
EM
EN
T
IN
N IO T VA O N
Product development is the creation of a new or different product that offers innovative new benefits to the end user.
Innovation is the engine of growth in today's marketplace. The pressures to innovate are unrelenting and the contribution to total sales revenue derived from new products will increase significantly over the next decade.
PRODUCT DIVERSIFICATION Diversification is the name given to the growth strategy .where a business markets new products in new markets
01
This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience.
02
For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.Â
03
However, for the right balance between risk and reward, a marketing strategy of diversification can be highly rewarding.
Political
Political factors are basically how the government intervenes in the economy. Specifically, political factors have areas including tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability.
Socio cultural Social factors include the cultural aspects and health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.
PEST ANALYSIS
PEST analysis describe a framework of macro environmental factors used in the environmental scanning component of strategic management
Economic Economic factors include economic growth, interest rates, exchange rates, inflation rate. These factors greatly affect how businesses operate and make decisions.
Technology Technological factors include technological aspects like R&D activity, automation, technology incentives and the rate of technological change.
MARKETING MIX
The marketing mix definition is simple. It is about putting the right product or a combination thereof in the place, at the right time, and at the right price.
Product
Price
1
A product is an item that is built or produced to satisfy the needs of a certain group of people.
The price of the product is basically the amount that a customer pays for to enjoy it.
2
8 3
Place Placement or distribution is a very important part of the product mix definition.
Promotion Promotion is a very important component of marketing as it can boost brand recognition and sales.
THANK YOU