Intensive strategies Flashcards
Intensive strategies
They require intensive efforts by the business to improve its competitive advantage with existing or new products in the market to increase profitability
Types of intensive strategies
-Market penetration
-Market development
-Product development
Market penetration
-The business focuses on selling current products to the current market to increase their market share
-Market research on current customers is used to determine how to improve the marketing mix of the business
-The business doesn’t modify current products or launch new products
-Aggressive marketing campaigns such as reducing prices to attract potential clients are used
Market development
-The business uses this growth strategy to sell its current products in new markets
-Customers are targeted in a potential market that is outside of its current target market
-The business increases sales of current products through the development of new markets
-Prices are restructured to cater to customers of all incomes
Product development
-The business uses this growth strategy to introduce new products to current markets
-New products are produced by the business for current markets
-The business conducts test marketing to establish whether new products will be accepted by current customers
-New products may be different than those of competitors
Differences between market development and product development
Market development:
-Its a growth strategy where a business aims to sell its current products in new markets
-The business implements the idea of expanding products in other geographical areas
-The business finds new ways of distributing products
-Prices are restructured to cater to customers of all income levels
Product development
Its a growth strategy where a business aims to introduce new products into current markets
-The business improves the product line by adding different types of related products or services
-The business conducts test marketing to establish whether new products will be accepted by current customers
-New products may be different than those of competitors
Advantages of intensive strategies
-Increase the control over the prices charged for products of services
-Increase customer loyalty through effective promotion campaigns
-Remove existing competitors and dominate market prices
-Increase in regular sales from existing customers
