What are the 4 growth strategies? | Kurve (2023)

by Oren Greenberg on

Growth SaaS Startup

Growing a business is no simple task. Approximately 65% of businesses fail during the first ten years of opening, and only 0.1% of companies will ever reach $250 million in annual revenue. Lack of product demand, mismanaged marketing, or unstable finances can lead to a lacklustre turnover or even closure – but a solid growth strategy will help mitigate these failures.

Analysing metrics, minimising costs and focusing on new B2B marketing efforts is critical in helping businesses to thrive, not just survive. This article will define growth strategy and explore why having one is so essential, uncover the core components of building a sound growth strategy, and discuss four marketing methods from the Ansoff Matrix that could help businesses grow.

What is a growth strategy?

A growth strategy is a plan to increase a business's size and value. It's holistically defining how you will win a race against your competition and identifying the most efficient way of reaching that result. What's more, it's applied to almost any area within marketing, and even in other departments such as sales or product-led growth.

A good strategy contains three elements: a diagnosis of the challenge, a guiding policy, and coherent action. Diagnosis considers the entire process, studying your competition, and understanding your benchmarks and metrics. This includes marketing analysis of customers and understanding how to drive engagement within each audience. A well-built guiding policy defines, articulates and communicates the process and the ideal destination – what actions are required to meet each milestone. Finally, the coherent action gets into the finer details like tactics, operations, and governance. A good growth strategy will consider all three elements and their components.

The four growth strategies

Today, growth strategies look a little different and follow an evolved outlook, like the Ansoff Matrix – one of many that we use. If you've studied growth before, you may know of the popular Four Ps. These are Product, Placement, Promotion and Price. Where the Four Ps focus on audiences, channels & pricing, the Ansoff Matrix is more effective for a broader view of markets and uses the older Four P framework within each of the 4 Ansoff quadrants.

Over time, the technological developments of SaaS and e-commerce altered how we plan strategies due to the impact on creative formats, the availability of new channels, new audience penetrations and new tools, all resulting in new skills. But, while the tactics and definitions have changed, the ultimate goal of creating sustainable growth remains the same.

The Ansoff Matrix is used to identify potential organisational or brand strategies. The matrix is built in a way that helps business owners understand their current system better and helps them analyse the risks associated with adopting a new plan. Each time you move into a new approach with varying tactics to achieve growth, risk increases.

What are the 4 growth strategies? | Kurve (1)

Ansoff's Matrix has two axes: one focuses on the product, and the other on the market. Sales, development and marketing teams work similarly, with one department investigating which products to offer in the future, while the other considering whom they want to serve. The goal is to use marketing as the foundation of your strategy but harness data, design, and product to work as a single interactive unit for long-term success.

Market Penetration

Market penetration is considered a low-risk strategy. A company using market penetration will attempt to expand the sales volume of their current products in their already established markets to increase their total market share.

(Video) Ansoff Matrix - Business Stretegy & Growth - Simplest explanation Ever

Often confused with market development, market penetration encourages brand loyalty and customer retention by using marketing material to engage customers using existing products or services. You can do this through price reductions or bundles, for example, that lure customers away from competitors or create higher-quality creative content that generates more quality leads. Or, you can explore ways to target existing customers and audiences through new products and services.

Market Development

Market development is a high-risk strategy that can yield significant returns. You should only consider this strategy when you already possess enough capital and resources to do so. Unlike market penetration, market development is about expanding or retargeting. This could mean taking an existing product to a new audience or market, or even altering your product into something new and shifting your focus to new customers all together.

To create a market development strategy, you should conduct extensive market research to identify market segments - small batches of people in a larger population grouped by labels. You can build these segments around identifiers like location, age, income, or industry. Once you've selected your ideal market segment, you need to create a marketing and branding strategy that advertises your existing product or service to attract a new type of customer. Try attracting new customers and markets by finding further uses for a current product or adding new features and benefits. Within SaaS, market development has become a collaborative effort between product and marketing teams. Internal alignment is essential for this strategy to work, as every new product or service needs to be on-brand and in line with messaging goals.

Product development

Product development is a strategic approach to growth that focuses on creating and commercialising new products. It's not about expanding your customer base by targeting new markets. Instead, it's improving your product line to attract more clients in your existing market segment.

Imagine a dessert restaurant that only serves ice cream. Expanding their menu to include waffles could increase existing customers' buying rates from their business. To determine new products, you should undergo extensive consumer research focussing on demands and competitor analysis. Product development requires a solid cross-functional collaboration between teams to be successful.


Diversification is the riskiest of the four growth options. This strategy involves introducing a new product into an entirely new market, in which you may have minimal experience. This could include deploying products in new geographic areas and translating the benefits of your products to the local population. Without support from growth marketing experts, failure is a distinct possibility, although the potential of a high payoff may be worth the risk.

Implementing a diversification strategy in an industry facing an extreme financial downturn or a company losing significant market share within a core part of their business may help prevent further damage or closure. When markets are challenging, and competition is fierce, many companies choose to protect their core business while simultaneously exploring new possibilities.

Connecting growth strategy to your growth marketing

Aligning your growth strategy with your marketing efforts can help you understand your next move. At Kurve, we've developed a process that we call Kurveology to guide us through the growth marketing strategies to help scale our clients' businesses.


Start by developing and defining the unique qualities that differentiate you from your competitors, emphasising the most relevant customer segments and how your product's unique attributes best meet their needs.

Always begin with the essentials. Research and study your consumers to understand their pains, fears, and worries, and link that to your service and how your products can help solve their pinch points.

Then, consider your brand, where you want to go, whom you want to target, and how you appear. Understanding your customers is essential, but defining your company is vital.

You need to create a story that resonates with your audience. The SaaS market is saturated with an abundance of information and voices. To break through the noise, you need to use a sophisticated strategy that says the right things, to the right people, and at the most opportune time.

Things to consider while strategising:

(Video) How to Develop a Growth Strategy: Choosing One That Works (Growth Strategy Part 3/4)

  • Target Audience

  • Client Journey Mapping

  • Funnel Mapping

  • Messaging Framework

  • Technology Stack


Conducting research on the state of your industry and competitor analysis is the best way to determine if your desired growth is both necessary and feasible. Understanding your competitor set within the context of marketing allows you to differentiate your products and services in a similar customer segment, this includes:

  • Their messaging – How do they speak about themselves?

  • Their creative – Who are the brand colours, language and products connecting with?

  • Their distribution –What marketing channels do they operate on?

The knowledge and facts you uncover in this step will shape the targets and KPIs for your marketing strategy evaluation to better understand the outcome.

Following competitor and industry analysis, develop a messaging framework based on your current brand positioning. This will include a map of common customer challenges, how they impact business, and then think about how your product might solve them.


Executing your marketing strategy starts with identifying how and where you're going to place your message that will be most effective for generating leads or driving sales. For SaaS businesses, some of the top distribution channels and methods include:

With all of your planning, resourcing, and goal-setting complete, you're ready to execute your growth marketing strategy and deliver results for the business.

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Ensure that your onboarding process is closely tied with the customer's buying cycle, aligning internal teams like marketing and sales to ensure an efficient onboarding process. Continuously compare results to your forecasted growth goals to see if your projected outcomes are still achievable or if anything needs to be adjusted.


With your campaign complete and your strategy reaching the end of its cycle, it's time to analyse your results against your original KPIs, individual channel performance KPIs, and growth goals. What went well? What didn't go so well? What can you do better next time?

You can now revert to step one and develop a new, more informed strategy for your next growth marketing drive using your established metrics and numbers.

Different growth marketing strategies

There are several different growth marketing strategies that you could use to increase your market share. Some of these strategies include:

  • Viral loops

A viral loop funnel requires just one satisfied user to share with others instead of needing as many leads as possible at the top of your sales funnel.

  • Milestone referrals

Businesses that use milestone referrals offer rewards for hitting specific benchmarks. In many cases, "milestones" are metrics like the number of referred friends.

Some traditional strategies are rigid and follow a defined order and structure. Advanced marketing teams are now taking a slightly different approach, called growth hacking. Growth hacking is a method used to drive rapid growth. With this growth plan, you create strategies focused on speed and quick results.

We prefer to encourage collaboration between Product, Marketing, Engineering and Data to build plans based on concrete evidence, rather than anecdotal, with accurate data-based measurements, instead of buzz and perception.

What are the 4 growth strategies? | Kurve (2)

Finding the right approach for you

Without a sound growth strategy built on data and expert industry knowledge, your business is in jeopardy. To ensure your company thrives, you need to create a unique growth plan that aligns with your ambitions, products, and brand position.

Using the Ansoff Matrix to guide the planning process can help identify new marketing opportunities while reminding you of the potential risks and dangers that new strategies can bring – especially when implemented poorly. Pay attention to your metrics, listen to your audience, and monitor your product. Learning is your first step in defining your next growth strategy.

Our performance-oriented approach constructs strategies on the core pillars of marketing and growth, but are nuanced and bespoke to your industry and goals.

(Video) Marketing Strategies For Small Business - 5 Growth Hacks (Ep. #32)

Let us help you build an effective growth strategy


What are the 4 growth strategies? ›

These are Product, Placement, Promotion and Price. Where the Four Ps focus on audiences, channels & pricing, the Ansoff Matrix is more effective for a broader view of markets and uses the older Four P framework within each of the 4 Ansoff quadrants.

What are the four types of growth? ›

Human development is a lifelong process of physical, behavioral, cognitive, and emotional growth and change.

What are the four growth strategies quizlet? ›

Framework that maps the four growth strategies (Market penetration, market development, product development, and diversification) to a grid based on whether they address new or existing products and markets.

What are the growth strategy? ›

A growth strategy is an organization's plan for overcoming current and future challenges to realize its goals for expansion. Examples of growth strategy goals include increasing market share and revenue, acquiring assets, and improving the organization's products or services.

What are the 4 four strategy elements? ›

The marketing mix, also known as the four P's of marketing, refers to the four key elements of a marketing strategy: product, price, place and promotion.

What is the four stage growth model? ›

Business life cycle refers to the processes all businesses go through from their inception to eventual stability or decline. Most experts describe the four principal stages of business growth — startup, growth, maturity, and renewal or decline.

What are the four 4 factors that influence growth? ›

Child growth and development are affected by 4 major types of environmental factors: biological, physical, psychosocial, and familial.

How many types of growth strategies are there? ›

There are four core strategies that make up organic growth. These strategies are known as market penetration, market development, product development, and diversification. Market Penetration: This growth strategy involves selling more of a company's existing products or services to its current customer base.

What are the main types of growth? ›

There are three (3) general types of growth that are considered in biology.
They are:
  • Growth in cells.
  • Growth in plants.
  • Growth in animals.
Jun 16, 2022

What is one of the four major growth strategies marketers? ›

The four marketing growth strategies include market penetration, market development, product development, and diversification.

Why are growth strategies important? ›

Growth strategies are important because they keep your company working towards goals that go beyond what's happening in the market today. They keep both leaders and employees focused and aligned, and they compel you to think long-term.

What is focus growth strategy? ›

The Focus Growth strategy applies a fundamental, bottom-up security selection process to a universe of companies with market capitalizations in excess of $2 billion at initial investment.

What is a four point strategy? ›

The 4-Point Approach is a common-sense, strategy driven framework that guides community based revitalization efforts that harnesses the social, economic, physical, and cultural assets that sets downtown apart, and ultimately leads to tangible outcomes that benefit the entire community.

What are the 4 C's of strategy? ›

Based on BSR's 20 years of developing such integrated strategies for dozens of companies and in collaboration with a panoply of stakeholders, we have created the "Four Cs" to help companies build integrated strategies by looking at customers, competitors, the corporation, and civil society and government.

What is step 4 of the strategy implementation process? ›

4. Execute and Monitor. It's time to put your strategic plan into action. All team members should have the resources they need to complete the task at hand.

What are the four drivers of growth? ›

All types of organizations need the four primary growth drivers: Alignment, Integration, Awareness and Relevance. All else is a supporting point or detail. The central role of these four drivers is to produce value that spurs growth by meeting and exceeding customer needs.

What are the four 4 factors that influence workers performance? ›

Here are some top factors that affect work performance.
  • Job Satisfaction. ...
  • Employee Engagement. ...
  • Training and Development. ...
  • The Right Tools for the Job. ...
  • Company Culture and Work Environment.

What are the 4 greatest factors that drive economic growth? ›

The four factors that drive economic growth are natural resources, labor, capital equipment, and entrepreneurship.

What is the most common growth strategy? ›

A firm pursuing market penetration strategy directs its resources to the profitable growth of a existing products in current markets. It is the most common form of intensive growth strategy.

How many growth stages are there? ›

Infancy (neonate and up to one year age) Toddler ( one to five years of age) Childhood (three to eleven years old) - early childhood is from three to eight years old, and middle childhood is from nine to eleven years old. Adolescence or teenage (from 12 to 18 years old)

What are some examples of growth? ›

Growth is an increase in physical size, like the growth of a sapling into a mature tree. There are other kinds of growth, like your sister's personal growth since she started to meditate every day.

What are the five 5 stages of growth? ›

Using these ideas, Rostow penned his classic Stages of Economic Growth in 1960, which presented five steps through which all countries must pass to become developed: 1) traditional society, 2) preconditions to take-off, 3) take-off, 4) drive to maturity and 5) age of high mass consumption.

What are the four 4 major domains of human development and its coverage? ›

The four Domains of Development are Communication, Curious Minds, Sense of Self & Relationships, and Strong & Healthy Bodies. Each of these describes an area of growth and learning.

What are the two basic growth strategies? ›

Growth strategies fall into two main categories: concentration strategies and diversification strategies.

Why strategy is important for success? ›

Strategy help us define our business, gives it a set of values, and gives it purpose. It helps us understand what success actually looks like. It provides a roadmap for our business, shows us our destination and identifies useful stopping points along the way.

What are the characteristics of a growth strategy? ›

Growth Strategy Examples
  • Increasing market penetration. ...
  • Targeting new customer segments. ...
  • Entering new markets. ...
  • Selling new products to existing customers. ...
  • Creating complementary products. ...
  • Productization of the value chain. ...
  • Shifting focus from customers to buyers or vice versa. ...
  • Strategic growth alliances.
Aug 17, 2018

What is your plan for growth? ›

A personal growth plan is a guideline for life: your goals, how you intend to achieve them, skills you need to master, and habits you want to develop. It should cover areas such as career, education, relationships, and self-improvement. A personal growth plan connects all areas of your life.

What is short term growth strategy? ›

Short-term growth strategies are typically focused on increasing revenue quickly and often involve riskier tactics. These strategies may include tactics such as aggressive marketing campaigns, discounted sales, and paid advertising.

What strategies will you use to achieve success? ›

8 Simple Ways to Be Successful—from 8 Inspiring Leaders.
  • Be Passionate. And do what you for love. ...
  • Work Hard. Don't ever fool yourself—success comes from really hard work. ...
  • Be Good. And by that, I mean damn good. ...
  • Focus. ...
  • Push the Limits. ...
  • Serve. ...
  • Create Ideas. ...
  • Be Persistent.
May 10, 2017

What are Ansoff's 4 growth strategies? ›

The four strategies in the Ansoff matrix are market penetration, market development, product development, and diversification.

What are the types of growth? ›

There are three (3) general types of growth that are considered in biology.
They are:
  • Growth in cells.
  • Growth in plants.
  • Growth in animals.
Jun 16, 2022

What are growth stages? ›

The growth stage is the period in a product's life cycle when it starts to gain popularity in the market. At this stage, more buyers accept the product as one of their top choices and it develops a loyal customer base. As a result, demand for the product increases, improving sales and revenue numbers.

What are the three basic of growth? ›

There are three phases of growth – meristematic, elongation and maturation.

What are the 4 factors of economic growth? ›

Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy. How these factors are combined determines the success or failure of the outcome.

What are the 4 market product strategies? ›

The four Ps are product, price, place, and promotion. They are an example of a “marketing mix,” or the combined tools and methodologies used by marketers to achieve their marketing objectives.


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