Ansoff Matrix
a tool, devised by Igor Ansoff, to provide a logical framework for the understanding and development of marketing objectives; the basis of the matrix is the degree of newness of the products to be sold and of the markets to be targeted. | ||||
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ANSOFF’s Matrix definition was found in categories: Business & Finance(1) Encyclopedia(1)
ANSOFF’s Matrix Definition from Business & Finance Dictionaries & Glossaries
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ANSOFF’s Matrix
a model (4 x 4 matrix) for identifying and analysing strategic direction = 1. Existing products in existing markets. 2. New products in existing markets. 3. Existing products in new markets. 4. New products in new markets.
a model (4 x 4 matrix) for identifying and analysing strategic direction = 1. Existing products in existing markets. 2. New products in existing markets. 3. Existing products in new markets. 4. New products in new markets.
ANSOFF’s Matrix Definition from Encyclopedia Dictionaries & Glossaries
| Wikipedia English - The Free Encyclopedia |
Product-Market Growth Matrix
The Ansoff Product-Market Growth Matrix is a marketing tool created by Igor Ansoff. The matrix allows marketers to consider ways to grow the business via existing and/or new products, in existing and/or new markets – there are four possible product/market combinations. This matrix helps companies decide what course of action should be taken given current performance. The matrix consists of four strategies:
- Market penetration (existing markets, existing products): Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service, with advertising or other promotions. Market penetration is the least risky way for a company to grow.
- Product development (existing markets, new products): A firm with a market for its current products might embark on a strategy of developing other products catering to the same market. For example, McDonalds is always within the fast-food industry, but frequently markets new burgers. Frequently, when a firm creates new products, it can gain new customers for these products. Hence, new product development can be a crucial business development strategy for firms to stay competitive.
- Market development (new markets, existing products): An established product in the marketplace can be tweaked or targeted to a different customer segment, as a strategy to earn more revenue for the firm. For example, Lucozade was first marketed for sick children and then rebranded to target athletes. This is a good example developing a new market for an existing product.
- Diversification (new markets, new products): Virgin Cola, Virgin Megastores, Virgin Airlines, Virgin Telecommunications are examples of new products created by the Virgin Group of UK, to leverage the Virgin brand. This resulted in the company entering new markets where it had no presence before.
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