Essay about Ansoff Matrix †Product Market Grid - 854 Words

Introduction to the Ansoff matrix The Ansoff product/ market matrix is a tool that helps businesses decide their product and market growth strategy. Ansoff’s product/ market matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The traditional four box grid or matrix Ansoff model Alternative Ansoff style matrix A revised version of the Ansoff matrix featuring a 3Ãâ€"3 or nine box grid or matrix. History – The Product / Market Matrix Igor Ansoff created the Product / Market diagram in 1957 as a method to classify options for business expansion. The simplisity of this model is that the four strategic options defined can be generically applied to any†¦show more content†¦For example by introducing loyalty schemes. A market penetration marketing strategy is very much about â€Å"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. Market Development (new markets, existing products): Here we market our existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. Exporting the product, or marketing it in a new region, are examples of market development. Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including: ââ€"  New geographical markets; for example exporting the product to a new country ââ€"  New product dimensions or packaging: for example ââ€"  New distribution channels ââ€"  Different pricing policies to attract different customers or create new market segments Product Development (existing markets, new products): This is a new product to be marketed to our existing customers. Here we develop and innovate new product offerings to replace existing ones. Such products are then marketed to our existing customers. This often happens with the auto markets where existing modelsShow MoreRelatedDesigning A Product s Portfolio Essay997 Words   |  4 Pagesemulating its production and design, and there is a need to keep up with demand and expand the product s reach, as well as scope and audience, to make economic sense. 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