Ansoff Matrix Lh
GROWTH STRATEGIES
Ansoff Matrix - 4 STRATEGIES FOR GROWTH
The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy.
Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the Ansoff product/market matrix is a series of suggested growth strategies for the business and helps them decide what direction the business wants to take. Ansoff used these four categories in a matrix to show how the opportunities differ in terms of new and existing products and markets
Market Penetration
Where the business focuses on selling existing products into existing markets. An example is the Wii, where other outlets such as Tesco, HMV, Amazon may decide to stock and sell a product that already sells, by introducing the product to their stores/websites they are allowing the public to purchase the product from them. They are entering into a market that already exists.
Market penetration aims to: • Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling
• Secure dominance of growth markets
• Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors
• Increase usage by existing customers – for example by introducing loyalty schemes
A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.
Write an example here that you think is market penetration and
Ansoff Matrix - 4 STRATEGIES FOR GROWTH
The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy.
Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the Ansoff product/market matrix is a series of suggested growth strategies for the business and helps them decide what direction the business wants to take. Ansoff used these four categories in a matrix to show how the opportunities differ in terms of new and existing products and markets
Market Penetration
Where the business focuses on selling existing products into existing markets. An example is the Wii, where other outlets such as Tesco, HMV, Amazon may decide to stock and sell a product that already sells, by introducing the product to their stores/websites they are allowing the public to purchase the product from them. They are entering into a market that already exists.
Market penetration aims to: • Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling
• Secure dominance of growth markets
• Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors
• Increase usage by existing customers – for example by introducing loyalty schemes
A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.
Write an example here that you think is market penetration and