Ansoff’s Matrix - 11 Flashcards
1
Q
Market Penetration
A
Focusing on selling existing products in existing markets
2
Q
4 Market Penetration Objectives
A
- Maintain or increase the market share of current products
- Secure dominance of growth markets
- Drive out competition
- Increase usage by existing customers (loyalty)
3
Q
Market Development
A
Seeking to sell existing products in new markets
4
Q
Market Development Approaches
A
- New geographical markets (e.g. new country)
- New product dimensions or packaging
- New distribution channels
- Different pricing policies to attract different customers
5
Q
Product development
A
Attempting to introduce new products into existing markets
6
Q
Good product development strategies
A
- Research and Development and innovation
- Detailed insights into customer needs
- Being first into a market
7
Q
Diversification
A
New products into new markets
8
Q
What a business may need to do to diversify
A
- Need to have a clear idea about what it expects to gain
- Clear assessment of risks
- Good balance of risk and reward
