Ansoff's matrix Flashcards
1
Q
ansoffs matrix
A
a marketing planning model that helps a business determine its product and market growth strategy.
2
Q
market penetration
A
-Growth strategy where the business focusses on selling existing products into existing markets
3
Q
market penetration - positives
A
- Maintain or increase market share for current products
- Secure dominance of growth markets
- Increase usage of existing customers
- Unlikely to need much investment in new market research
- Focusses on markets and products it knows well
4
Q
market penetration - negatives
A
-May not allow significant growth compared to other strategies
5
Q
product development
A
-A growth strategy where a business aims to introduce new products into existing markets
6
Q
product development - pros
A
- Plays to the strengths of the business
- Good way of exploiting the existing customer base
- First mover advantage – innovation and research and development
7
Q
product development - cons
A
- Need to do lots of market research
- Investment into innovation
- Can be risky
8
Q
market Development
A
- A growth strategy where the business seeks to sell its existing products into new markets
- New geographical markets
- New distribution channels
- Different pricing strategies
9
Q
market Development - pros
A
- Good strategy when existing markets are saturated or in decline
- Good for international growth
10
Q
market Development - cons
A
- Riskier than product development – international markets
- Existing products may not suit new market
11
Q
diversification
A
- The growth strategy where a business markets new products in new markets
- Products and markets are unrelated
12
Q
diversification - pros
A
-It can be highly rewarding if it goes well
13
Q
diversification - cons
A
- Risky as:
- No direct experience with product or market
- Few economies of scale
