UNIT 8 ANSOFF MATRIX - market development

Question 1

Market Development involves

Answer 1

offering existing products but targetting a new market

Question 2

Give examples of waht new segments could be in terms of

Answer 2

geographical area - ofering existing product in new part of country or world

Demographic features - bs offering product to younger or different socioeconomic customer grouip

Question 3

Although bs knows this type of producst already what does it need to ensure

Answer 3

product offeing matches needs of new target market

Question 4

The busienss also needs to understandf conditon of

Answer 4

new market

Question 5

Bs needs to understand conditions of new mkt for example

Answer 5

existing competitros
distribution systems
key factors influencing customres buying decsisions

Question 6

Entering a new market can be

Answer 6

dangerous

Question 7

explain using an example why entering a new mkt can be dangerous - EXISITING BSs

Answer 7

existing bs may repsond by protecting their sales

and

may try to force a new entrant to the mkt out

( by decreasing prices as likely to have EOS so can afford to reduce prices for a while , if havant already or if using cost savings for higher profit margins )