Intensification growth strategies involve achieving greater sales through increased market share. Intensification strategies can be separated into three separate types. Market penetration strategy is a type of intensification strategy that involves increasing market share in existing markets. Market development strategy involves entering new markets using existing products. And Product development strategy involves introducing new products to existing markets with the possible long term benefit of being able to provide the new products into new markets. Following are different types of intensification growth strategies:
- Market Penetration – This growth strategy is focused on increasing market share. Market penetration basically falls into two areas. One is Customer Acquisition which focuses on attracting new customers. The other is Customer Retention which focuses on keeping existing customers. Both of these methods of increasing market share are based on marketing, customer service and vehicle service delivery.
- Market Development – This strategy involves identifying and building a customer base in new markets using existing skills and expertise. This is another view of the diversification strategy referred to as concentric. The idea is to find new groups of customers or market segments to market and provide existing services for.
- Product Development – This strategy focuses on providing new services to existing customers with the possibility of growing into new markets by offering the same services to new customers. This is similar to the diversification strategy referred to as horizontal. When this strategy is employed – new services that existing customers may be interested in are offered and business growth is achieved via increased sales.
