Growth vector model or product market growth grid refers to the model which is used as a strategy either for existing or new market or for existing or new product. This model is explained below:-
|Existing product||New product|
|Existing market||Market penetration strategy||Product development strategy|
|New market||Market development strategy||Diversification strategy|
1.) Market penetration strategy:- Market penetration strategy is used when there is existing product and existing market. In this type of strategy the company attempt to penetrate either by improving quality, dropping down price or by attractive advertising.
2.) Product development strategy:- product development strategy is used when there is new product and existing market. In this type of strategy the company introduce the new product in an established market.
3.) Market development strategy:- this type of strategy is used for finding out new market and new user for existing product.
4.) Diversification strategy:- Diversification strategy is used for developing a new product for new market.
Thus, there are different strategies for the marketers for new or old product and for new or old market.