P1 P2 Unit 3 Introduction to Marketing
According to, the Ansoff Product-Market Growth Matrix is an instrument in marketing that was developed by Igor Ansoff. In the Ansoff matrix, it allows the marketers to look at different ways to grow the business through existing products and markets and new products and markets. Moreover, the matrix is composed of four various strategies:
- Market Penetration- market penetration is composed of existing products and markets, it occurs when an organisation enters an existing market with current products and services.
- Product Development- product development is composed of existing markets and new products, it occurs when an organisation with a current or existing market undertakes a strategy of creating a new product which provides to the same market.
- Market Development- market development constitutes new markets and existing products, it occurs when the organisation with an existing product targets a new market through tweaking the product and marketing to new consumers.
- Diversification- diversification is composed of new products and new markets, it occurs when an organisation or a company embarks on an area of business in which it had no presence before, from the four strategies of the matrix diversification has the highest risk, however the gains that the business owners will be more abundant than the rest.
Ansoff matrix is one of the most widely used tools in marketing of products and businesses. It is a simple yet powerful tool in identifying the market and the products. Ansoff Matrix has contributed to a number of decisions by multinational companies worldwide. (insert picture of ansoff matrix here)
Each section of Ansoff 's matrix shows a strategy which would be used in times with what you are doing. For example this is particularly relevant to Apple. The Apple iPod is a real life example of a new product delivery into an existing market. Prior to its
- Market Penetration- market penetration is composed of existing products and markets, it occurs when an organisation enters an existing market with current products and services.
- Product Development- product development is composed of existing markets and new products, it occurs when an organisation with a current or existing market undertakes a strategy of creating a new product which provides to the same market.
- Market Development- market development constitutes new markets and existing products, it occurs when the organisation with an existing product targets a new market through tweaking the product and marketing to new consumers.
- Diversification- diversification is composed of new products and new markets, it occurs when an organisation or a company embarks on an area of business in which it had no presence before, from the four strategies of the matrix diversification has the highest risk, however the gains that the business owners will be more abundant than the rest.
Ansoff matrix is one of the most widely used tools in marketing of products and businesses. It is a simple yet powerful tool in identifying the market and the products. Ansoff Matrix has contributed to a number of decisions by multinational companies worldwide. (insert picture of ansoff matrix here)
Each section of Ansoff 's matrix shows a strategy which would be used in times with what you are doing. For example this is particularly relevant to Apple. The Apple iPod is a real life example of a new product delivery into an existing market. Prior to its