unit 8 Flashcards
what’s ansoff matrix
a marketing planning model that helps a business determine its product and market strategy
what does ansoff matrix axis consist of
- new markets
- existing markets
- existing products
- new products
what does market penetration
a growth strategy where a business aims to sell existing products into existing markets
examples of mark penetration strategies
- aldi, rapid organic growth in the uk
targeting same customer base with
new stores - dominos, use e-commerce to
encourage buy pizza
market penetration evaluation
- firms focuses on markets and
products it knows well - can exploit insights on what
customers want - unlikely to need significant new
market research - but will the strategy allow the
business to achieve its growth
objectives
what product development
growth strategy where a business aims to introduce new products into existing markets
evaluating product development
- strategy that often plays to strength of
an established business - strong emphasis on effective market
research and successful innovation - great way of exploiting the existing
customer base - being first to market us usually
important
what is market development
a growth stratgey where the business seeks to sell its existing products into new markets
approaches to market development
- new geographical markets
- new distribution channels (e-
commerce) - different pricing policies to attract
new customers in different segments
example of market development
Starbucks expansions into china
evaluating market development
- logical strategy where existing
markets are saturated or in decline - often more risky than product
development - existing products may not suit new
markets
diversification definition
growth strategy where a business markets new product in new markets
evaluating diversification
- no direct experience of the product or
the market - few economic of scale
- however it successful overall risk of
the businesses spread
-
challenge for facing business strategy
find a way of achieving a sustainable competitive advantage over the other competing products and firms in a market
what is porters suggested approach to strategic positioning (2)
differentiation and low costs effective way for firms to gain competitive advantage