ANSOFFS DIRECTIONAL POLICY MATRIX: (TROTT 2012)

CURRENT MARKETS

CURRENT PRODUCTS 1. MARKET PENETRATION STRATEGY

NEW PRODUCTS 3. PRODUCT DEVELOPMENT STRATEGY

NEW MARKETS

2. MARKET DEVELOPMENT STRATEGY

4. DIVERSIFICATION STRATEGY

The Matrix provides four marketing strategies: 1. Market penetration: selling comparatively more established products into established markets (e.g. Kanopys custom video streaming service into more Australian universities) via increased promotion/price reductions/better routes to market. Kanopy is doing this in reaching Australian universities, by liaising with university libraries through advertisement at industry events (e.g. Australian Librarian Conference), and better contact with suppliers to better access customers (e.g. learn of tertiary institutions that would be interested) and present their custom video streaming service. 2. Product development: concerns developing new products and placing them in existing markets Kanopy: Introducing preview requests as feature to streaming services (which allow libraries to learn what students are willing to watch) and PDD (patron driven demand), a feature which allows libraries to only pay for what students require in certain areas. Kanopy is promoting these new features in the existing markets of Australian/Asia Pacific tertiary universities. 3. Market development: concerns taking existing products and offering them to new markets. Kanopy: is taking existing technological products custom video streaming service and associated features - and offering them to US market primarily through alliance with MEF. 4. Diversification: concerns simultaneously developing new products and placing them into new markets. This is considered the most risky strategy, given bearing the costs of new product development whilst expanding into areas outside core experience and targeting a new audience. Kanopy: Not employing this strategy. Kanopy is focused on further imparting existing products into Australasian (existing) and US (new) markets, while promoting new products to existing clients/markets.