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Chapter 13 Strategies for Growth and Managing the Implications of Growth Hisrich Peters McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Shepherd Figure 13.1 - Growth Strategies Based upon Knowledge of Product and/or Market 13-2 Growth Strategies  Penetration Strategy  A strategy to grow by encouraging existing customers to buy more of the firm’s current products.  Marketing can be effective in encouraging frequent repeat purchases.  Does not involve anything new for the firm.  Relies on taking market share from competitors and/or expanding the size of the existing market. 13-3 Growth Strategies (cont.)  Market Development Strategies  Strategy to grow by selling the firm’s existing products to new groups of customers.  New geographical market - Selling in new locations.  New demographic market - Selling to a different demographic group.  New product use - Selling an existing product, which may have a new use, to new groups of buyers. 13-4 Growth Strategies (cont.)  Product Development Strategies  A strategy to grow by developing and selling new products to people who are already purchasing the firm’s existing products.  Provides opportunities to capitalize on existing distribution systems and on the corporate reputation the firm has with these customers. 13-5 Growth Strategies (cont.)  Diversification Strategies  A strategy to grow by selling a new product to a new ...
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