Masoff

2008 Spec. Issue 2 Sept. 2009

NGFL WALES BUSINESS STUDIES A LEVEL
RESOURCES.

Page 1

The Ansoff Matrix
Specification requirement -The Ansoff
Matrix – marketing strategies with differing degrees of risk.
The Ansoff Matrix approaches product mix or portfolio management from a different point of view to Product Life Cycle Analysis and the Boston Matrix. Instead of focusing on profitability or sales, the Ansoff Matrix outlines the options open to firms if they wish to grow, improve profitability and revenue. These options indicate to how to manage the development of the product range. The Ansoff Matrix looks similar to the
Boston Matrix in that it is a two-by-two analysis, but in this case the axes of the matrix relate to whether marketing strategy is targeted at existing customers or new customers and if existing products should be used or as an alternative new products should be developed. We see the structure below.

growth, is faced with four choices for action
(these can be combined or mixed).
These options are:
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•

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Market Penetration. Concentrating on existing products to existing markets.
Market Development. Finding and developing new markets for existing products. Product Development. Developing new products for existing markets.
Diversification. Developing new products and new markets.

Market Penetration—Existing products for existing markets.

We can see from the matrix, that an business looking to increase sales and create

Focusing on existing products for existing markets, means that the firm aims to increase sales within its present market place. To be successful at market penetration firms must be aware of what has made the product a success in the first place. The firms marketing strategy should be based on this existing relationship. Existing
Products

There are several penetration strategies open to firms. These strategies include:

The Ansoff Matrix

New
Products

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