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Product expansion and customer base penetration are two different growth strategies.
Product expansion involves developing and introducing new products or services to the market. This strategy is often used when a company has a successful product or service and wants to leverage its brand and customer base to increase sales. It requires understanding customer needs, creating products that meet those needs, and effectively marketing those products.
On the other hand, customer base penetration is about selling more of the existing products or services to the current customers. This strategy involves deepening relationships with existing customers, understanding their needs better, and finding ways to meet those needs with the current product or service offerings.
Both strategies have their own advantages and challenges, and the choice between them depends on the company's situation, resources, and goals.
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The motivation for product expansion must stem from providing customer value by solving a felt need. It's important to create products that are adjacent to your existing product base and aligned to your core value proposition, in order not to confuse your customers. The current market context demands a shift from being "product led" to being "customer led". This path requires a proactive market intelligence department that is on the lookout for market opportunities for new products, enhancements to existing products and even partnerships.
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How do you find the right strategy to grow your organization in a rapidly changing business environment? "Growth IQ" distills decades of tested strate...
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