Market development market penetration


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Successful leaders understand that if their organization is to grow in the long term, they can't stick with a "business as usual" mindset, even when things are going well. They need to find new ways to increase profits and reach new customers. There are numerous options available, such as developing new products or opening up new markets, but how do you know which one will work best for your organization?

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Market Penetration, Product Development, Market Development And Diversification

There are many avenues of growth a business can travel and there are multiple strategies to be adopted. But for now, lets get started thinking about how you plan to grow your company! One good way to penetrate the market you are in may simply be to find new ways for your customers to use your product.

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Market Penetration

Market development and market penetration were two of four distinct company growth strategies identified by Igor Ansoff in a "Harvard Business Review" article. Product development and product diversification were the other two. Market development is the use of an existing product or service offering to attract new customer market, whereas market penetration is an effort to dig deeper within an existing marketplace.

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To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on the firm's present and potential products and markets customers. By considering ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product-market combinations. Ansoff's matrix is shown below:.