Student Name: Mortejo, Shan Danielle M.

Mortejo

Student ID: 17101866

Course: BSBA MM - 3; Grp. 4 CBA MM-SM

Submitted to: Dr. Stephene Roy C. Condino (Biggles)

Week 11 and 12 Reflection

As I was reading the week 11 powerpoint, I got to know more about the different marketing growth

strategies and it really piqued my interest because I was not fully aware that these tactics existed and so I was really

grateful to know about the different strategies namely: market penetration, market development, product

development, and diversification.

Clark (2017), stated the differences between each growth strategy in which market penetration involves

attempting to increase overall market share through capitalizing on your current product or service offerings, which

is usually done by lowering your price or by implementing more targeted and alluring marketing tactics to lure

customers away from the competition. A good example of this, according to Pilcher and Widner (2019), would be

how Coca-Cola’s existing product, Diet Coke, was considered to be a huge success however, the product mainly

attracted female customers and Coca-Cola wanted a wider market share. Their solution? They came up with Coke

Zero to target the male market even though its primary benefits and taste were really just similar to Diet Coke as

well.

Market development is when a business aims to introduce its existing products or services to new markets

(Clark, 2017). This may involve venturing into new locations or customer segments. Uber is a great example of a

successful market development growth strategy since the company started out by introducing its service to a

relatively small market which is San Francisco in 2010, compared to its current astonishing market growth scope

which now encompasses around 700 cities worldwide as of 2020 (Pilcher & Widner, 2020).
 According to Clark (2017), product development is when a firm creates new product offerings to cater to its

existing markets. Apple does an excellent job in utilizing this growth strategy just like how they launch their yearly

most anticipated Apple Event where they release new product lines ranging from their iPhones, Macbooks, iPads,

Apple Watches, and so on.

The last growth strategy which is also considered to be the riskiest one is diversification since it focuses on

producing a new product or service offering to a new market and there’s a high level of uncertainty with the actual

outcome once the strategy is implemented (Clark, 2017). This kind of strategy may also be considered a “high risk,

high reward” one because a good marketing scenario would be how Amazon, according to Izquierdo (2021), used

this strategy and the rinse and repeat technique to deliver a superior customer experience.

This started when they began to offer clients a greater selection of books that were more accessible than

those exhibited in traditional retailers. Because everything was online, Amazon didn't have to worry about rack

space. Customers can also check the website to see if a book is currently in stock. Amazon was able to surpass larger

brick-and-mortar bookstores due to this convenience. Another approach they employ is the rinse and repeat strategy,

in which Amazon uses its successful book-selling strategy to expand into new areas such as DVD and electronics

sales.

The week 12 powerpoint talked about consumer segmentation variables and how market segmentation

enables marketers to create highly targeted, and effective marketing strategy plans. It enables businesses to

concentrate on their niche markets rather than targeting the mainstream market. Segmentation allows marketers to be

more efficient in terms of time, money, people, and other resources. Businesses can learn more in-depth information

about their customers by segmenting them into different groups with similar needs, traits, lifestyles, locations, and

the like (Bock, n.d.). Understanding your market segmentation allows firms to better develop their product, sales,

and marketing initiatives. According to a blog post on Yieldify (2020), the 4 most common types of market

segmentation are demographic, psychographic, geographic, and behavioral. A brilliant example of good and

profitable customer segmentation is when Yieldify collaborated with Wine Club Vinomofo and utilized behavioral

segmentation to target specific audiences namely, their new and returning visitors and returning clients. Yieldify
targeted their new visitors by offering them a $15 incentive once they decide to join the Wine Club community.

Visitors who had already subscribed but had not yet redeemed their vouchers were reminded of their first order

incentive while returning clients, on the other hand, saw an ad promoting Vinomofo's premium services. Ultimately,

this tailored strategy resulted in a 34.02% conversion rate increase with new visitors and a 29.24% CR increase with

returning visitors! This is just one of the many instances where a comprehensive and strategic customer

segmentation increased a firm’s profitability, brand image, and brand awareness.

References

Clark, W. (2017, September 26). Growth Strategies. Bizfluent. Retrieved April 24, 2022, from

https://bizfluent.com/info-7748386-growth-strategies.html

Izquierdo, R. (2021, January 4). 4 Real Growth Strategy Examples & What to Take from Them. The Motley Fool.

Retrieved April 24, 2022, from https://www.fool.com/the-blueprint/growth-strategy/

Market Segmentation: The 4 Types & 10 Benefits With Examples. (2020, June 23). Yieldify. Retrieved April 24,

2022, from https://www.yieldify.com/blog/types-of-market-segmentation/

Pilcher, R., & Widner, M. (2019, November 15). What Is Market Penetration Strategy? (Definition and Examples).

Lighter Capital. Retrieved April 24, 2022, from

https://www.lightercapital.com/blog/what-is-market-penetration-strategy-definition-examples/

Pilcher, R., & Widner, M. (2020, March 12). What Is Market Development Strategy? (Definition and Examples).

Lighter Capital. Retrieved April 24, 2022, from

https://www.lightercapital.com/blog/what-is-market-development-strategy-definition-examples/