INTENSIVE&GROWTH STRATEGY

INTRODUCTION Companies management looking for the

new opportunities to increase their sales and profits.

<We believe growth strategies is about.

<increase sales and revenue.

<Capture market share. <Beat the competition.

<Exploit the existing demand.

TYPES OF GROWTH STRATEGY Market penetration strategy. Market development strategy. Product development strategy.

MARKET PENETRATION STRATEGY

The first strategy company is looking to adapt for increase their sales and profits.

Market efforts of the company to offer their existing products in the current market is called market penetration.

The best way to do attract competitor and looking for potential customer for the existing products.

EXAMPLES OF MARKET PENETRATION STRATEGY.

Recognizing that software as a service can be a potent market penetration too, dell is assembling a services portfolio that now include e-mail disaster recovery, spam/virus filtering and archiving via its message one acquisition.

ADVANTAGE and DISADVANTAGE

Advantage of concentration is that the company is doing what it does best.

Disadvantage ; if a company becomes overconfident in its present product / services mix, it may lose touch with shifts in demand or the environment which may require improvement .

This mar cost the firm a lot.

Guidelines for Market Penetration

Four guidelines when market penetration may be an especially effective strategy are:

Current markets not saturated Usage rate of present customers can be increased significantly Market shares of competitors

declining while total industry sales increasing Increased economies of scale provide major competitive advanta

ges There are two aspects of market penetration: Rapid market penetration: based on two assumptions, to lower t

he price and promotional activities can be increased. Slow market penetration: also based on two assumptions, to low

er the price but promotional activities are not changed.

MARKET DEVELOPMENT STRATEGY

Developing a new market for the existing company product is called market development strategy. This is the process of finding new market for the new customer to increase sales and profits. Companies can develop market on geographical such as city, country, region, state etc and demographical such as age , gander, class etc.

MARKET DEVELOPMENT STARTEGY EXAMPLES

Pakistan state oil (PSO) developing new market by exporting oil to Afghanistan.

Chinese Products developed new market for their product worldwide.

MARKET SEGMENT DEVELOPMENT

Market targeting; the primary purpose of segmentation is to learn enough about the various segments of the market to be able to determine which will be have good potential.

Selecting target markets; the decision must be made on whether or not to target one market a new markets or several markets.

single-market targeting; Allows the firm to focus on just one market. The reason to focus on a single market is that the firm would decide to be the “best” alternative For the target group.

Selective targeting: Or targeting a limited number of markets, expend the business’s opportunities and limits its dependence on a single market (to fill rooms or seat at off-peak times).

Cont……… Extensive targeting or full marketing

coverage: is attempting to gain a large market share by targeting the majority of the potential users of one’s products/services.

MASS MARKET TARGETING STRATEGY

This mass-market targeting strategy can be approached in two ways.(1) differentiated market targeting : developing different concepts for each market segment with in a product or service category E.g differnet concepts of chains.

(2)undiferentiated market targeting ; offering one product/service to all market segments .

The objective in that is to reduce costs by focusing on large market.

Guidelines for Market Development

Six guidelines when market development may be an especially effective strategy are:

New channels of distribution that are reliable, inexpensive, and good quality

Firm is very successful at what it does Untapped or unsaturated markets Capital and human resources necessary to ma

nage expanded operations Excess production capacity Basic industry rapidly becoming global

PRODUCT DEVELOPMENT STRATEGY

Developing or modifying new products and offering to the existing market is called product development strategy.

PRODUCT DEVELOPMENT STRATEGY EXAMPLES

GOOGLE development a new chrome for the existing internet user.

McDonalds is always within the fast- food industry, but frequently markets new burgers.

Guidelines for Product Development

Five guidelines when product development may be an especially effective strategy to pursue are:

Products in maturity stage of life cycle Competes in industry characterized by rapid t

echnological developments Major competitors offer better-

quality products at comparable prices Compete in high-growth industry Strong research and development capabilities