Theme 3 Flashcards
1
Q
what is the ansoff matrix?
A
A tool that helps businesses choose the market they want to operate in and what products they want to sell
2
Q
what are the approaches to market penetration
A
build a brand image
increase repeat purchases by developing customer loyalty
increase promotional activities
incentivise customer affiliations (clubcard)
3
Q
what are the approaches to product development?
A
conduct market research to identify areas for improvement
use product portfolio to manage product range
divert funds to research and development
4
Q
benefits and limitations of market penetration
A
low risk
product and market are familiar
limited investment required
however
business becomes vulnerable if it doesnt innovate
possible limited growth potential
5
Q
A
