Developing Growth StrategiesCompanies should always be looking to the future. One useful device for identifying growthopportunities for the future is the product/market expansion grid. The product/marketexpansion grid is a portfolio-planning tool for identifying company growth opportunitiesthrough:1).Market Penetration—making more sales to present customers without changingproducts in any way. Market penetration means trying to increase sales of a firm’s present productsin its present markets probably through a more aggressive marketing mix. The firm may try tostrengthen its relationship with customers to increase their rate of use or repeat purchases, or try toattract competitors’ customers or currentnonusers. New promotion appeals alonemay not be effective. A firm may need toadd a home page on the Internet to make iteasier and faster for customers to place anorder. Or, it may need to add more storesin present areas for greater convenience.CurrentproductsCurrentmarkets2).NewmarketsMarketpenetrationstrategyNewproductsProductdevelopmentstrategyMarketdevelopmentstrategyMarket Development—a strategyfor company growth by identifying anddeveloping new markets for currentcompany products (example, demographicmarkets). Market development means tryingto increase sales by selling present products in new markets. Firms may try advertising in differentmedia to reach new target customers. Or they may add channels of distribution or new stores innew areas, including overseas.(Diversificationstrategy)3).Product Development—a strategy for company growth by offering modified or newproducts to current markets. Product development means offering new or improved products forpresent markets. By knowing the present market’s needs, a firm may see new ways to satisfycustomers. Computer software firms like Microsoft boost sales by introducing new versions ofpopular programs.4).Diversification—a strategy for company growth by starting up or acquiring businessesoutside the company’s current products and markets. Diversification means moving into totallydifferent lines of business perhaps entirely unfamiliar products, markets, or even levels in theproduction-marketing system.