A marketing strategy defines objectives and describes the way you're going to satisfy
customers in your chosen markets. It does not have to be written down but it is easier to
communicate to outsiders, like your bank manager or other investors, when it is.
A set of strategies found quite commonly in smaller businesses are growth strategies. One
way to look at strategies to grow your business is through the way you will use products and
markets or customers.
1. Current product/current market
Market penetration is a strategy of increasing your share of existing markets. You
might achieve this by raising customers' awareness of your products and services or
finding new customers. For further information on planning effective marketing
communications see the Related Items section below for a link to the Factsheet:
Planning marketing communications.
2. Current product/new market
Market development is a strategy of finding and entering new markets with your
current product or service range. The new market could be a new region, a new
country or a new segment of the market. For further information on on selecting and
entering new markets see the Related Items section below for a link to the Factsheet:
Entering new markets.
3. New product/current market
Product development is a strategy for enhancing benefits you deliver to customers by
improving your existing products and services or developing new ones.
4. New product/new market
Diversification is a strategy that usually carries high costs and high risks. It often
requires firms to adopt new ways of doing business and so has consequences far
beyond simply offering new products/services in a new market. It is therefore usually
a strategy to be adopted when other options are not feasible.