Based on How to Create a Marketing Growth Strategy - CXL by Tom Whatley
Evaluate the risks associated with different growth opportunities using a framework like the Ansoff Matrix.
The Ansoff Matrix outlines four major growth strategies: market penetration, market development, product development, and diversification.
Come up with new tactics to increase product sales by targeting existing customers and new customers within existing markets.
This strategy is best if you’re an established company looking to grow, but you don’t urgently need to expand beyond your niche.
Consider experiments with:
- Sales and promotions: A more aggressive promotion or advertising strategy can help your brand reach a larger group of your target customers.
- Revisiting pricing strategy: Dropping the price of your products or offering a lifetime plan may attract new customers and sales.
- Customer experience improvements: Tailoring your customer experience according to their wants and needs can increase customer loyalty and advocacy.
- Acquiring a competitor: Acquisitions can quickly increase your market share and bring in new customers.
In 2021, accounting software platform Bill.com acquired spend management tool Divvy in order to increase its market share. Bill.com penetrated this market by taking over a company already in it and reported increased fourth-quarter earnings of $78.3 million, including over $10 million from Divvy.
Take existing products into new markets, including new geographic regions, customer segments, or channels to reach customers.
If your desired customers have similar needs and behavior to your existing customers, you can employ similar tactics that have already worked well for you.
Run experiments like:
- Regional or global expansion: Expand into foreign markets or untapped domestic markets.
- New customer segments: Focus your marketing and promotional efforts to reach a new type of customer.
- New channels: Build new revenue streams in an untapped channel, like content marketing or email marketing.
This strategy is only possible with a deep knowledge of your customer. By understanding what pain points exist, you have the opportunity to alleviate them.
Test activities during the product development stage, such as:
- R&D: Invest in research and development to create new products for the existing market.
- Acquisitions: Acquire competitors’ products or technology to enhance your offering within the market you already serve.
- Partnerships: Make strategic alliances with other brands to develop offerings or leverage each others’ distribution channels.
This is the riskiest growth strategy, but it can set you up for future growth within a new market, allowing you to test new growth strategies within the new market.
There are two types of diversification you can experiment with:
- Related diversification. The brand has some existing relation to the new product or market it wants to pursue.
- Unrelated diversification. The new business endeavor is entirely unrelated to your existing products and market.
Last edited by @hesh_fekry 2023-11-14T10:08:43Z