Market Expansion Grid Tool - Assignment Example

Growth in a company creates an important, enthusiastic corporation where individuals see genuine opportunity. At the same time, the management must be careful not to solely make growth its main objective but rather should focus on profitable growth. The main responsibility of marketing is to achieve profitable growth for the company. Marketing must recognize, evaluate and select market opportunities and strategize on how to achieve things. The product-market expansion grid is one of the devices for identifying growth opportunities. There are four strategies one for every quadrant in the grid (Yim Hee, 76). The grid has two dimensions which are product and market dimensions. Four growth strategies can be formed from these two dimensions. They include:
- Market penetration,
- Market development,
- Product development, and
- Diversification.

In market development, the target is on the new markets new segments in the market. It includes selling more of the same things to different people. In this case, I will:
- Target different geographical markets either locally or internationally,
- Target different groups of people ranging from different age groups, gender, and demographic profiles,
- Utilize different sales channels mainly online or direct sales.

Diversification is a risky strategy this is because there is inadequate scope for utilizing current expertise or realizing economies of scale especially when you are trying to sell entirely different services or products to different customers. Its main strength is that one business is unlikely to be affected in case one business suffers from adverse circumstances (Yim Hee, pg.89).

Market penetration comprises of advertisement, introducing a loyalty scheme, increasing the sales force, and launching price or other special offer promotions and/or buying a competitor.

Product development includes:
- Extending the products through producing different variants, or simply packing existing products in a whole new way,
- Developing of related services or products,
- Increase the time to the market, customer service levels and quality,
- Appropriate management of risk and leveraging of the existing communication channels.