8.1 Strategic direction
Ansoff Matrix - the Grid
– a marketing planning model that helps a business determine its
product and market strategy
Market Penetration
Definition:
– growth strategy where a business aims to sell existing products in
existing markets (e.g. selling more, increasing advertising, extension
strategies..)
○ aim to increase market share
○ low risk
○ by selling more existing products to the same customers
○ get existing customers to buy more
○ widen range of existing products
◆ however, market already saturated?
Product development
Definition:
– growth strategy that aims to introduce new products into existing
markets (e.g. Dyson, Coke, Apple)
○ tech innovations
○ brand extensions
○ requires spending
◆ however, requires market research which can be timely and
costly
Market development
Definition:
Ansoff Matrix - the Grid
– a marketing planning model that helps a business determine its
product and market strategy
Market Penetration
Definition:
– growth strategy where a business aims to sell existing products in
existing markets (e.g. selling more, increasing advertising, extension
strategies..)
○ aim to increase market share
○ low risk
○ by selling more existing products to the same customers
○ get existing customers to buy more
○ widen range of existing products
◆ however, market already saturated?
Product development
Definition:
– growth strategy that aims to introduce new products into existing
markets (e.g. Dyson, Coke, Apple)
○ tech innovations
○ brand extensions
○ requires spending
◆ however, requires market research which can be timely and
costly
Market development
Definition:
