Concepts in Marketing, Sales, and Customer Contact-Module 4

Strategic Opportunity Matrix

Framework that maps the four growth strategies (market penetration, market development, product development, and diversification) to a grid-based on whether they address new or existing products and markets

Market penetration

Growth strategy focused on current products and current markets with the goal of increasing market share, least risk

Market development

Growth strategy focused on expanding existing products into new markets

Product development

Growth strategy uses new products in the existing market

Diversification

Growth strategy creates completely new opportunities for the company by creating new products and new markets, most risk

Example of Market penetration

Throughout 2014, Under Armour fueled its growth by focusing largely on promotion, distribution, and consistent product.

Example of Market development

The ______ __________ strategy allows a small company like Poached jobs to stage its growth, perfect its existing product, and capture new markets one at a time

Example of Product development

Nissan was the first major automaker to commit to the mass production of an electric vehicle (EV)

Example of Diversification

Today, 54% of Disney's revenues—but only 32% of its profits—come from movies and parks. Its most profitable growth comes from new products in new markets