Ansoff's Matrix

Question 1

What is Ansoff’s Matrix?

Answer 1

• A marketing planning model that helps a business determine its product and marketing strategy

Question 2

What does Ansoff’s Matrix include?

Answer 2

• Market Penetration
• Product Development
• Market Development
• Diversification

Question 3

What is Market Penetration?

Answer 3

• Growth strategy where a business sells existing products in existing markets
• Businesses focus on markets and products it knows well
• Short - lasting strategy

Question 4

What is Product Development?

Answer 4

• Growth strategy where a business aims to introduce new products into existing markets
• Plays to strengths
• Being first to market is important

Question 5

What is Market Development?

Answer 5

• Growth strategy where the business seeks to sell existing products in new markets
• New geographical markets
• New distribution channels
• Different pricing policies
• Existing products may not suit new markets

Question 6

What is Diversification?

Answer 6

• Growth strategy where a business markets a new product in a new market
• Risky strategy - Few economies of scale
• Approaches to Diversification = R+D