Strategies to Fast Forward Your Business Growth
A risk-reduction strategy that involves adding product, services, location, customers and markets to your company’s portfolio. Many small companies are one-trick ponies, betting their entire futures on a single product, a single service, a single location or even a single customer. And there’s nothing wrong with that in the beginning. But as you grow larger, you’ll find opportunities to add products, services, locations, customers and markets. Diversifying in this way can help your business weather tough times by providing alternate sources of revenue in the event that your original market dries up, stops growing or is hit by new competition.
A business strategy where a business attempts to find new groups of buyers as potential customers for its existing products and services. New users can be defined as: new geographic segments, new demographic segments, new institutional segments or new psychographic segments.
Product development is the process of designing, creating and marketing new products or services to benefit customers. Sometimes referred to as new product development, the discipline is focused on developing systematic methods for guiding all the processes involved in getting a new product to market. Product development involves either improving an existing product or its presentation, or developing a new product to target a particular market segment or segments. Consistent product development is a necessity for companies striving to keep up with changes and trends in the marketplace to ensure their future profitability and success.
A business will utilize a market penetration strategy to attempt to enter a new market. The goal is to get in quickly with your product or service and capture a large share of the market. Market penetration is also a measure of the percentage of the market that your product or service is able to capture.
Advantages of market penetration pricing include:
- It may cause quick diffusion and adoption of your product in the market. If your product is cheap enough and of similar quality to competing products, it should spread out into the market and be purchased by customers quickly.
- It may create goodwill among the first customers that purchase the product due to the aggressive pricing. This may create customer referrals.
- Efficiency is encouraged because of thinner profit margins due to the aggressive pricing. *Efficiency will be needed to maintain profitability.