Ansoff’s Matrix
Ansoff’s Matrix
Ansoff’s Matrix is a marketing tool. It allows businesses
to weigh up the level of risk involved in different marketing strategies.
The matrix considers the growth of a business through:
new or existing products in
new or existing markets.
Ansoff’s Matrix
Market penetration
Market penetration involves selling more of the same
products in the same markets. This strategy is low
risk.Examples of how this may be achieved include:
Brand repositioning
Promotion
Loyalty schemes
Dropping prices
Market development
Market development is concerned with selling existing
products in new markets. This strategy carries
medium risk as organisations may not have much Knowledge of the markets they wish to break into.
Possible methods of market development include:
Exploring foreign markets
Using e-commerce
Product development
Product development is about selling new products to existing markets. This strategy may take advantage
of
spare production capacity and technological advancements. It carries a medium risk.
Products developed may be:
Completely new lines
Products related to existing lines
Modifications of existing products
Diversification
Diversification involves selling new products in new
markets. This is the most risky of Ansoff’s four strategies.
Diversification might occur through:
Integration with other businesses
New product development
