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5 Min Read

“Growth Strategy.” Are there different kinds?

5 Min Read

Contents
Strategy demands research
A successful example
FREE Strategy Whitepaper
Choosing an approach
Start a conversation

It starts with research, data, insights, and a plan

To pull off the previously-mentioned goals, a successful growth strategy in B2B marketing requires a deep understanding of the target market, the competitive landscape, and the needs and preferences of customers. Growth marketing strategies will struggle without good data. Data and analytics are needed to identify trends and opportunities for growth and align sales and marketing efforts to drive revenue and increase market share. Additionally, research will lead to target metrics to keep everyone aligned.

Let’s consider some common growth strategies in B2B marketing:

  1. Market penetration:
    Increasing sales of existing products or services in current markets.

  2. Market development:
    Entering new markets with existing products or services.

  3. Product development:
    Launching new products or services in existing markets.

  4. Diversification:
    Expanding into new markets with new products or services.

A strong growth strategy is critical for B2B businesses to stay competitive and achieve long-term success. Why? Because capitalism! Innovate or die is a truism in B2B. If you don’t pursue growth, your competitors surely will. Additionally, there is a strong focus on “innovation” as a growth engine in today’s B2B environment. Real innovation takes research and planning; it won’t happen by chance. 

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It’s vital that you understand your market environment thoroughly when selecting the best growth strategy approach. In other words, don’t skimp on research.

What does this look like?

Let’s take the second item from our common strategies list (market development) and flesh out an example:

 

Company A is a software company that provides project management solutions to small and medium-sized businesses. They’ve been in business for a few years and have established a solid customer base in their local region.

 

To grow their business, Company A decides to implement a market development growth strategy. They identify new regions with demand for project management solutions but where they currently have no presence. They research the market, the competition, and the potential customers in these regions to understand their needs and preferences.

 

Based on their research, Company A develops a targeted marketing campaign to reach potential customers in these new regions. They use a combination of digital marketing tactics such as social media advertising, email marketing, and content marketing to build awareness and generate leads. To nurture digital leads at scale, they employ marketing automation through their CRM software to help lead readers and visitors down the path to conversion.

 

In addition to marketing efforts, Company A also invests in building a strong sales team in these new regions. They hire sales professionals who are familiar with the local market and can effectively communicate the value of their project management solutions to potential customers.

 

Over time, Company A’s market development strategy pays off, and they successfully expand their business into new regions, gaining new customers and increasing their revenue. They continue to refine their strategy based on customer feedback and market trends to ensure long-term growth and success.

How do you know which growth approach to take?

A company should consider various factors when deciding which growth strategy to employ. Here are a few key considerations:

 

Market analysis
Companies should conduct thorough market research to identify growth opportunities and understand customer needs and preferences. Based on this analysis, they can determine which of the four growth strategies aligns best with their business goals.

 

Competitive analysis
It’s important to assess the competitive landscape and understand what other companies are offering and how they are marketing themselves. This can help identify gaps in the market and opportunities for differentiation.

 

Resource availability
Companies should consider their financial resources, staffing, and technological capabilities when deciding which growth strategy to pursue. Some strategies may require significant investments in research and development, while others may require more resources for sales and marketing efforts.

 

Risk tolerance
Each growth strategy comes with a certain level of risk. For example, market penetration strategies may be a lower risk but may have limited growth potential, while diversification strategies may have higher risk but potentially higher rewards. Companies should carefully consider their risk tolerance when selecting a growth strategy.

It’s OK to ask for help

Ultimately, deciding which growth strategy to pursue will depend on a company’s unique situation and goals. It’s important to carefully assess the market, competition, resources, and risk factors before deciding. It can be helpful to engage with a well-equipped B2B marketing agency with the ability to research your market and advise on strategies and tactics and deploy both digital and traditional tactics over the full development of a campaign. 

 

BS LLC is ready

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