I believe your question refers to “diversification strategies” in business.
Businesses diversify to grow or expand their company size, product or service lines, and/or marketplace.
Concentric diversification means growth or expansion in business activities already occurring in the company.
Conglomerate diversification means expansion into businesses, products or services unrelated to the current activities of the company. The company is taking on new products, services and marketplaces.
Horizontal diversification if the addition of an unrelated product line that appeals to existing customers. L Another definition of horizontal diversification is the offering of a new, unrelated product line through existing channels.
Products define markets. The markets are determined by the customers (product demand), not management.
Conglomerate diversification requires the company to acquire new techniques, skills and facilities, whereas concentric diversification can be accomplished with the same financial, technical and marketing resources that already exist in the company. Thus, conglomerate diversification is a more major undertaking than is concentric diversification.
Here are some mechanisms for business diversification:
Modification of internal procedures
Acquisition of another firm
Alliance with another company
Licensing of a new technology
Importation and distribution of a product line from another company
The first reference is from the eNotes Encyclopedia of Management. It covers in detail and provides excellent discussion on diversification in the context of business growth strategies.
There are at least two meanings for this term.
First of all, it can refer to a firm that creates different sorts of advertisements for the same product in different countries. Such a strategy may be necessary due to the differences in cultures across countries. The images that a firm uses to appeal to consumers in one country might not work in another. This makes diversification important.
Second, this can refer to having a variety of advertising methods across a variety of media, just within one country. This strategy may be necessary in order to appeal to a broader segment of the population. It may be necessary to have a presence in social networking, for example, to reach younger people even as a firm maintains ads in newspapers and magazines to appeal to older people. These ads are likely to use different approaches to appeal to the different wants and needs of the various segments as well.