ansoffs matrix 2 Flashcards
1
Q
define market penetration
A
- existing product and existing market
- sell more to the same customers
- i.e pricing, advertising, promotion, loyalty schemes
2
Q
advantages of market penetration
A
- low risk
- builds on existing knowledge
3
Q
disadvantages of market penetration
A
- low rewards
- not significant growth
4
Q
define market development
A
- existing product/service sold to new market
- e.g. demographics, geographical
5
Q
advantages of market development
A
- greater rewards than penetration
6
Q
cons of market development
A
- risk of new market (poor knowledge) is higher
7
Q
define product development
A
new product for the existing market
- new product for existing customers
8
Q
pros product development
A
- higher returns that penetration
9
Q
cons product development
A
- higher risk based on new product
