CONSUMER BEHAVIOR

ANSWER THE FOLLOWING COMPREHENSIVELY.

1. List the three broad categories of growth strategies.
There are three types of growth strategies
-Intensive growth strategies aim at achieving further growth for existing products
and/ or in existing markets.
-Integrative Growth Strategies One of the common growth strategies is the
integrative growth strategy. A major contributor to the growth of Reliance Industries in
the early stages was backward and forward integration. It is today the most fully
integrated company in the world
-Diversification Growth Strategies means adding new lines of business. The new
lines of business may be related to the current business or may be quite unrelated. If
the new lines added make use of the firm’s existing technology, production facilities or
distribution channels or it amounts to backward or forward integration, it may be
regarded as related diversification.

2. Name the three most common types of intensive growth strategies.

-The three most common types of intensive growth strategies are
-Market penetration is an intensive growth strategy that emphasizes more
intensive marketing of existing products. This strategy has two goals: sell more to
existing
customers and sell to new customers in existing markets.
-Market development is an intensive growth strategy that focuses on reaching
new target markets, such as customers in another geographic area or customers who
have different demographics from current customers. A retail store might open a
branch in a new city or develop a website to sell its products online.
-Product development is an intensive growth strategy in which businesses
develop new products or enhance their existing products. Enhancements may include
bonus features or new packaging for products

3. What are the goals of market penetration?

-Market Penetration has two goals, sell more existing customers, and sell to new
customers in existing markets. The main objective behind the market penetration
strategy is to launch a product, enter the market as swiftly as possible and finally,
capture a sizeable market share. Market penetration is also, sometimes used as a
measure to know whether a product is doing well in the market or not.

4.Describe the difference between market development and product development.

- The difference between market development and product development is that
Market development is an intensive growth strategy that focuses on reaching new target
markets, such as customers in another geographic area or customers who have
different demographics from current customers. A retail store might open a branch in a
new city or develop a website to sell its products online while product development is an
intensive growth strategy in which businesses develop new products or enhance their
existing products. Enhancements may include bonus features or new packaging for
products.