Marketing 101: Developing Strategies for Growth and Downsizing
In the previous post, we explored the BCG Approach to analyze current business portfolio.
Beyond evaluating current businesses, designing the business portfolio involves finding businesses and products the company should consider in the future. Companies need growth if they are to compete more effectively, satisfy their stakeholders, and attract top talent. At the same time, a firm must be careful not to make growth itself an objective. The company’s objective must be to manage “profitable growth.”
Source: Invisia
Developing Strategies for Growth and Downsizing
Marketing has the main responsibility for achieving profitable growth for the company. Marketing needs to identify, evaluate, and select market opportunities and lay down strategies for capturing them. One useful device for identifying growth opportunities is the product/market expansion grid
1. Market Penetration
Company growth by*** increasing sales of current products*** to current market segments without changing the product.
2. Market development
Company growth by identifying and developing new market segments for current company products.
3. Product Development
Company growth by offering modified or new products to current market segments.
4. Diversification
Company growth through starting up or acquiring businesses outside the company’s current products and markets
Companies must develop not only strategies for growing their business portfolios but also strategies for downsizing them. When a firm finds brands or businesses that are unprofitable or that no longer fit its overall strategy, it must carefully prune, harvest, or divest them.
Next post, we will talk about the importance of partnering in order to build customer relationship.
Disclaimer:
The article above contains my personal views/reflections on the subject matter; As well as some excerpts from the book "Principles of Marketing" written by Kotler and Armstrong.
Growth and downsizing are two of the biggest challenges a business owner faces. You need to get customer identity and access management and learn more helpful new things for technology tools. Your business could become too large, or you may be forced to downsize due to a change in economic climate. In either case, growth or downsizing will affect your entire company and each person within it. Therefore, understanding what strategies are available to manage both situations is critical.
When you're growing, you need to develop strategies for growth and when you're downsizing, you need to develop strategies for downsizing. Just because you've been doing things a certain way doesn't mean that's the best way so you can visit https://rubygarage.org/blog/how-to-make-a-website-like-booking-com to learn app development skills easily. In fact, if your company is growing, it's likely that there are some things about how you do things now that aren't working as well as they should. When it comes to marketing, there are three basic strategies, growth, downsizing and maintenance.