Ansoff’s Matrix Flashcards
What is ansoff’s matrix?
A marketing planning model that helps a business determine its product and market strategy
Where is market penetration on Ansoff’s matrix?
Existing products and existing markets
Name methods of market penetration in ansoff’s matrix
Reduce pricing
Increase advertising
Positives of market penetration in ansoff’s matrix
+ low risk option, repeating success
+ exploit insights on what customers want
+ cost and time effective due to not much R&D
Negatives of market penetration in ansoff’s matrix
- limited growth
- hard to differentiate
Where is product development in ansoff’s matrix?
New products in existing markets
Positives of product development in ansoff’s matrix
+ plays to the businesses strengths
+ exploiting existing customer base
Negatives of product development in ansoff’s matrix
- high cost on market research
- need to be quick and first within the market
Where is market development in ansoff’s matrix
Existing products in a new market
List some approaches to market development in ansoff’s matrix
New geographical markets
New distribution channels
Different pricing policies
Positives of market development in ansoff’s matrix
+ logical strategy
+ existing market will be saturated
Negatives of market development in ansoff’s matrix
- high risk, no customer base
- existing products may not suit new markets
- lots of R&D, so time consuming and costly
Where is diversification in ansoff’s matrix
New product and new market
Positives of diversification in ansoff’s matrix
+ business can spread
+ product portfolio is wider and balnced = profitability
+ more innovation
Negatives of diversification in ansoff’s matrix
- risk
- no direct experience
- few economies of scale
