Theme 3 Topic 2
Corporate Strategy
Ansoff Matrix
Marketing planning tool which helps a business determine its growth strategy.
Market Penetration:
Businesses focus on selling existing products in an existing market.
Least risky, lower potential rewards.
Seeks to achieve four main objectives:
- Maintain or increase market share of current products
- Restructure a mature market by driving out competitors
- Secure dominance of growth markets
- Increase usage by existing customers
e.g. Tesco launching a £5 million advertising campaign
Market Development:
Businesses seek to sell existing products in a new market.
More risky strategy than market penetration due to the targeting of new markets.
There are many possible ways of approaching this strategy:
- New geographical markets
- New product dimensions or packaging
- New distribution channels (e.g. moving to e-commerce and mail order)
- Different pricing policies to attract different customers or create new market segments
e.g. Google launching their search engine in China
Product Development:
A business aims to introduce new products into existing markets.
May require the development of new competencies and the business to develop modified products
which appeal to existing markets.
A successful product development strategy places the marketing emphases on:
- Research & development and innovation
- Detailed insights into customer needs
- Being first to market
e.g. Cobra Beer launching a draft version of its bottled beer.
Diversification:
A business sells new products in new markets
High risk strategy due to little experience in new market with new product
Chance of being highly rewarding
e.g. NESCAFE developing a range of soft drinks
Corporate Strategy
Ansoff Matrix
Marketing planning tool which helps a business determine its growth strategy.
Market Penetration:
Businesses focus on selling existing products in an existing market.
Least risky, lower potential rewards.
Seeks to achieve four main objectives:
- Maintain or increase market share of current products
- Restructure a mature market by driving out competitors
- Secure dominance of growth markets
- Increase usage by existing customers
e.g. Tesco launching a £5 million advertising campaign
Market Development:
Businesses seek to sell existing products in a new market.
More risky strategy than market penetration due to the targeting of new markets.
There are many possible ways of approaching this strategy:
- New geographical markets
- New product dimensions or packaging
- New distribution channels (e.g. moving to e-commerce and mail order)
- Different pricing policies to attract different customers or create new market segments
e.g. Google launching their search engine in China
Product Development:
A business aims to introduce new products into existing markets.
May require the development of new competencies and the business to develop modified products
which appeal to existing markets.
A successful product development strategy places the marketing emphases on:
- Research & development and innovation
- Detailed insights into customer needs
- Being first to market
e.g. Cobra Beer launching a draft version of its bottled beer.
Diversification:
A business sells new products in new markets
High risk strategy due to little experience in new market with new product
Chance of being highly rewarding
e.g. NESCAFE developing a range of soft drinks
