Product Market Mix
Igor Ansoff Product /Market Mix
The Igor Ansoff product-market mix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at Strategic development options.
Existing Products New Products Market Penetration | Product Development | Market Development | Diversification |
Existing Markets
New Markets
Each of these strategic options holds different opportunities and downsides for different organizations, so what is right for one’s business won’t necessarily be right for another. Every organization should think about what option offers the best potential for their own business and market. They should also think about the strengths of their business and what type of growth strategy their strength will enable most naturally.
Here are the Ansoff Strategies in summary:
MARKET PENETRATION (SAME PRODUCTS, SAME MARKETS)
Developing your sales of existing products to your existing market(s). This is fine if there is plenty of market shares to be had at the expense of your competitors, or if the market is growing fast and large enough for the growth you need. If you already have large market share you need to consider whether investing for further growth in this area would produce diminishing returns from your development activity. It could be that you will increase the profit from this activity more by reducing costs than by activity seeking more market share. Strong market share suggests there are likely to be better returns from extending the range of products/services that you can offer to the market as in the market option.
In Zimbabwe when current markets are not saturated with a particular product/services market penetration is needed for example market for beer is not saturated Delta Beverages can increase production and supply the
The Igor Ansoff product-market mix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at Strategic development options.
Existing Products New Products Market Penetration | Product Development | Market Development | Diversification |
Existing Markets
New Markets
Each of these strategic options holds different opportunities and downsides for different organizations, so what is right for one’s business won’t necessarily be right for another. Every organization should think about what option offers the best potential for their own business and market. They should also think about the strengths of their business and what type of growth strategy their strength will enable most naturally.
Here are the Ansoff Strategies in summary:
MARKET PENETRATION (SAME PRODUCTS, SAME MARKETS)
Developing your sales of existing products to your existing market(s). This is fine if there is plenty of market shares to be had at the expense of your competitors, or if the market is growing fast and large enough for the growth you need. If you already have large market share you need to consider whether investing for further growth in this area would produce diminishing returns from your development activity. It could be that you will increase the profit from this activity more by reducing costs than by activity seeking more market share. Strong market share suggests there are likely to be better returns from extending the range of products/services that you can offer to the market as in the market option.
In Zimbabwe when current markets are not saturated with a particular product/services market penetration is needed for example market for beer is not saturated Delta Beverages can increase production and supply the