In most large corporations, strategic planning takes place at four levels.

A) The Corporate Level- corporate headquarters is responsible for designing a corporate

strategic plan to guide the whole enterprise; it makes decisions on the amount of
resources to be allocated to each division, as well as on which businesses to start or
eliminate.
B) The Division Level- each division establishes a division plan covering the allocation of
funds to each business unit within the division. For example, the marketing division
would formulate strategies for how the various units would work.
C) The Business Level- each business unit develops a strategic plan to carry that
business unit into a profitable future. Eg. The units in the marketing division would be
Sales, Advertising, Promotions, Public Relations, Market Intelligence, etc.
D) The Product Level- each product line, and brand within the business unit develops a
marketing plan for achieving its objectives in its product market.

The Product-Market Expansion Grid, also known as Ansoff’s Model, is a framework that
helps businesses analyze their potential growth opportunities by identifying new
products or market segments. The model was developed by Igor Ansoff, a
Russian-American mathematician and business theorist, in the 1950s.

The Product-Market Expansion Grid consists of four key strategies:

1. Market Penetration: This strategy involves selling more of an existing product to
the same market segment. Companies can achieve this by increasing promotion
and advertising, improving customer service, and lowering prices. Market
penetration is the least risky strategy because the company already has a
presence in the market and knows its customers.

2. Market Development: This strategy involves introducing an existing product to a

new market segment. Companies can achieve this by identifying new customer
groups and expanding their distribution channels. Market development requires
companies to understand the needs and preferences of a new market segment.

3. Product Development: This strategy involves introducing a new product to an

existing market segment. Companies can achieve this by developing new
products or improving existing ones. Product development requires companies
to conduct market research and understand customer needs and preferences.

4. Diversification: This strategy involves introducing a new product to a new market

segment. Companies can achieve this by expanding their product range or
 entering a new market. Diversification is the riskiest strategy because it requires
significant investment and a deep understanding of new markets.

By using the Product-Market Expansion Grid, companies can identify potential growth
opportunities and develop effective marketing strategies to achieve their goals. It helps
companies to analyze the risks and potential benefits associated with each strategy,
and to choose the most appropriate one based on their resources, capabilities, and
objectives.

the BCG Model, also known as the Growth-Share Matrix:

● It is a portfolio management tool that helps companies analyze their product

lines and allocate resources. The BCG Model is a useful tool for portfolio analysis
and strategic planning.

● It classifies a company's products into four categories based on market growth

rate and relative market share: stars, cash cows, question marks, and dogs.

● Stars have a high market share and high growth rate and require significant
investment to maintain their position.

● Cash cows have a high market share but a low growth rate and generate
significant profits, requiring minimal investment.

● Question marks have a low market share but a high growth rate and require
significant investment to become stars or cash cows.

● Dogs have a low market share and low growth rate and typically generate low
profits and require minimal investment.

● The BCG Model helps companies to identify the potential of each product and
allocate resources accordingly.

● It also helps to identify products that require investment to maintain or improve

their position in the market.