Ansoff Matrix. Maxwell Marchand. Ansoff Matrix developed by Igor Ansoff, a Russian American mathematician and business manager Made as a framework for identifying corporate growth opportunities Four generic growth strategies: -Market Penetration -Market Development -Product Development
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Ansoff Matrix developed by Igor Ansoff, a Russian American mathematician and business manager
Made as a framework for identifying corporate growth opportunities
Four generic growth strategies:
To maintain or increase share of the current market with current products
Marketing Penetration is achieved by:
-Increased usage by existing customers
-Attracting customers away from rivals
-Gain Marketing share at expense of rivals
-Encourage increase of frequency of use
-Devise and encourage new applications
-Encourage non buyers to buy
Examples of Market Penetration:
Starbucks coffee starting out was small, marking to people who wanted coffee in a local area.
Selling the same product to different people, entering new markets or segments with existing products, Gaining new products, new segments, new markets, and entering overseas markets
●Bringing existing products to new markets
● Moderate risk, CostlyProduct Development
Product Development is achieved by:
-New products to replace current products
-New innovative products
-Product line improvements
-Product line extensions
-Products at different quality level to existing products
Examples of Product Development:
A company extending their branding to another product. Example: Arm & Hammer extending to include sale of toothpaste
●New products sold to new markets
●New products for new consumers
● Very RiskyMarketing Diversification
Marketing Development is achieved by:
-New products to new markets.
-New products for new customers
Examples of Market Development:
McDonalds starting McCafe.
●Same product to different people
●Entering existing markets with
● Moderate RiskMarket Development
Market Development is achieved by:
-Same product to different people
-Entering new markets or segments with
-Gaining new customers, new segments, new markets
-Entering oversea markets
Examples of Market Development:
Expanding their market to undeveloped (in terms of the business and marketing) areas and parts of the world- example: Coca Cola expanding their reach to Russia.
Advantages of the Ansoff Matrix:
- Increasing the brand loyalty, this will encourage customers to buy their brand instead of some other. Well known brands use this strategy, such as; Kellogg's corn flakes.- Encourages customers to buy the product more regularly.- The brand may bring out different size quantities of the product, which will encourage customers to buy more of the product.
Disadvantages of the Ansoff Matrix:
-is highly simplistic and does not factor in the external environment,