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Use the RACE Growth System to develop your digital strategies, improve process
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See what's includedA key part of marketing strategy development is to review the strategic options for growing a business. Here we're sharing a breakdown of actual investment by companies using this classic marketing model that has stood the test of time since it originally dates from the 1960s...
You may recognize Ansoff’s growth model, which is a matrix that can be used to identify alternative growth strategies by looking at present and potential products in current and future markets. The four growth strategies are market penetration, market development, product development, and diversification.
It's no surprise that investment in existing markets is the main focus, followed by new product development. But it's surprising to me that market development and diversification are as high as they are. This breakdown showing the balance between investments is a useful prompt for those involved in shaping business and marketing strategy to explore the options outside of market penetration.
I feature the Ansoff framework in my Digital Marketing Strategy and Implementation book where I use this visual to show how digital channels can be used to support it.
By Dave Chaffey
Digital strategist Dr Dave Chaffey is co-founder and Content Director of online marketing training platform and publisher Smart Insights. 'Dr Dave' is known for his strategic, but practical, data-driven advice. He has trained and consulted with many business of all sizes in most sectors. These include large international B2B and B2C brands including 3M, BP, Barclaycard, Dell, Confused.com, HSBC, Mercedes-Benz, Microsoft, M&G Investment, Rentokil Initial, O2, Royal Canin (Mars Group) plus many smaller businesses. Dave is editor of the templates, guides and courses in our digital marketing resource library used by our Business members to plan, manage and optimize their marketing. Free members can access our free sample templates here. Dave is also keynote speaker, trainer and consultant who is author of 5 bestselling books on digital marketing including Digital Marketing Excellence and Digital Marketing: Strategy, Implementation and Practice. In 2004 he was recognised by the Chartered Institute of Marketing as one of 50 marketing ‘gurus’ worldwide who have helped shape the future of marketing. My personal site, DaveChaffey.com, lists my latest Digital marketing and E-commerce books and support materials including a digital marketing glossary. Please connect on LinkedIn to receive updates or ask me a question.
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