Ansoffs Matrix Flashcards
What is Ansoff’s matrix
a marketing planning model that helps businesses determine its product and market strategy
what are the two axis’s on the matrix grid
existing or new markets, existing or new products
what are the four areas in the ansoff’s matrix
market penetration, product development, market development and diversification
what is market penetration?
increasing the market share widen range of products sell more products to new and existing markets
what is market development
a growth strategy where the business seeks to sell its existing products into new markets.
what are the different ways that a business can achieve market development
new geographical markets, new distributions channels, differents pricing policies to attract new customers in different segments
what is product development?
a growth strategy where a business aims to introduce new products into existing markets
when would product devolopment be used
to play to the strengths of an established business, emphasis on effective market research and successful innovation, a great way of exploiting and existing customer base, however being first to market is important
what are examples of product development
Dysons, coca cola life
when would a business use market penetration
as a low risk option to to provide a good insight into customer wants, its unlikely to need need new significant market research, the business can focus on markets it knows well
what are examples of market penetration?
Aldi or Dominoes
when would a business use market development?
logical strategy where existing markets are saturated or in decline, more risky than products product development
