The document discusses the Ansoff Matrix, a marketing planning tool that helps businesses determine product and market growth strategies. It outlines the four strategies in the matrix - market penetration, market development, product development, and diversification - and provides definitions and examples for each along with their relative risk levels. Market penetration has the lowest risk while diversification carries the highest risk. The document also notes some advantages and disadvantages of the Ansoff Matrix approach.
The document discusses the Ansoff Matrix, a marketing planning tool that helps businesses determine product and market growth strategies. It outlines the four strategies in the matrix - market penetration, market development, product development, and diversification - and provides definitions and examples for each along with their relative risk levels. Market penetration has the lowest risk while diversification carries the highest risk. The document also notes some advantages and disadvantages of the Ansoff Matrix approach.
The document discusses the Ansoff Matrix, a marketing planning tool that helps businesses determine product and market growth strategies. It outlines the four strategies in the matrix - market penetration, market development, product development, and diversification - and provides definitions and examples for each along with their relative risk levels. Market penetration has the lowest risk while diversification carries the highest risk. The document also notes some advantages and disadvantages of the Ansoff Matrix approach.
Background Information • First published in the Harvard Business in 1957.
• Ansoff matrix is a marketing planning tool
which usually helps a business in determining its product and market growth. Insert picture of Matrix Market Penetration Definition: The company tries to grow using its existing products in existing markets. They can do this by selling more to established customers.
Real life examples (Research)
Nike features famous athletes in print and television ads designed to take market share within the athletic shoes business from Adidas and other rivals.
Level of risk? Low risk.
Penetration requires huge expense on advertising and personal selling. To lead the competition in an established market, promotions and pricing strategy is needed to attract more customers. Market Development Definition: extending existing products to new markets. (Expanding geographically, new distribution channel, new product packaging, different pricing policies) Real life examples (Research):
Level of risk? Riskier than the market
penetration strategy. Product Development Definition: a business develops a new product to sell to existing market. Companies develop new products closely associated with the brand.
Real life examples (Research): Coca cola increased the
range of products offered by the company – Diet coke.
Level of risk? Riskier than market penetration
& product development. Diversification Definition: Business markets new products to new market/customers.
Real life examples (Research):
1988, PowerAde was made by The Coca-Cola Company.
Level of risk? Very high.
Evaluation Advantages Disadvantages • Focused Approach • Only a theoretical model It forces market planners and management to think about By simplifying far too many the expected risks of moving in complicated things, the Ansoff a certain direction. Matrix becomes almost unrealistic.