Market Development-Growth Matrix

The Market Development-Growth Matrix is a two-by-two matrix used to analyze and evaluate the potential of a product or service in the market. It is used to identify the best strategies for market development and growth.

At a very high level, the Market Development-Growth Matrix is used in the context of business, marketing, finance.

Market Development-Growth Matrix quadrant descriptions, including examples
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What is the Market Development-Growth Matrix?

A visual explanation is shown in the image above. The Market Development-Growth Matrix can be described as a matrix with the following quadrants:

  1. Market Development: Identify opportunities for growth in existing markets, such as introducing a new product or service to an existing market, or expanding into new geographic areas.
  2. Market Penetration: Identify opportunities for growth in existing markets, such as increasing the market share of an existing product or service, or increasing the frequency of use.
  3. Product Development: Identify opportunities for growth in existing markets, such as introducing a new product or service to an existing market, or introducing a new feature or functionality to an existing product or service.
  4. Diversification: Identify opportunities for growth in new markets, such as introducing a new product or service to a new market, or entering a new business area.

What is the purpose of the Market Development-Growth Matrix?

The Market Development-Growth Matrix is a two-by-two matrix used to analyze and evaluate the potential of a product or service in the market. It is used to identify the best strategies for market development and growth. The matrix is divided into four quadrants, each representing a different market strategy.

The top-left quadrant is labeled “Market Development” and is used to identify opportunities for growth in existing markets. This could include introducing a new product or service to an existing market, or expanding into new geographic areas. A literal example of a possible entry in this quadrant could be “Expand into new geographic areas in Europe.”

The top-right quadrant is labeled “Market Penetration” and is used to identify opportunities for growth in existing markets. This could include increasing the market share of an existing product or service, or increasing the frequency of use. A literal example of a possible entry in this quadrant could be “Increase the frequency of use of our existing product.”

The bottom-left quadrant is labeled “Product Development” and is used to identify opportunities for growth in existing markets. This could include introducing a new product or service to an existing market, or introducing a new feature or functionality to an existing product or service. A literal example of a possible entry in this quadrant could be “Introduce a new feature to our existing product.”

The bottom-right quadrant is labeled “Diversification” and is used to identify opportunities for growth in new markets. This could include introducing a new product or service to a new market, or entering a new business area. A literal example of a possible entry in this quadrant could be “Enter the online retail market.”


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What templates are related to Market Development-Growth Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Market Development-Growth Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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