Market Penetration Essay Example
Analytical Tools
Case1
Prepared for: Prof Madya Sofiah Abd Rahman MKT750 Strategic Marketing Management
Prepared by: Muhammad Mazlan Farid b. Mastar 2009306619 EMBA14B
Analytical Tools 1. ANSOFF Matrix The Ansoff Matrix is a marketing tool created by Igor Ansoff. The Ansoff Matrix is a tool that helps businesses decides their product and market growth strategy.
When to use it Ansoff’s growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.
How to use it This matrix helps companies decide what course of action should be taken given current performance. The matrix consists of four strategies:
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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 (although these new products need not be new to the market; the point is that the product is new to the company). 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. 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.
MKT750
Case1
Prepared for: Prof Madya Sofiah Abd Rahman MKT750 Strategic Marketing Management
Prepared by: Muhammad Mazlan Farid b. Mastar 2009306619 EMBA14B
Analytical Tools 1. ANSOFF Matrix The Ansoff Matrix is a marketing tool created by Igor Ansoff. The Ansoff Matrix is a tool that helps businesses decides their product and market growth strategy.
When to use it Ansoff’s growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.
How to use it 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 (although these new products need not be new to the market; the point is that the product is new to the company). 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. 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.
MKT750