B T E C N AT I O N A L B U S I N E S S

Ans "" #r $uct % &arket &atri'

I N T R O D U C T I O N TO M A R K E T I N G

M a r k e t i n g Te c h n i q u e s : G r ! t h S t r a t e g i e s
Intr $ucti n The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy. Ansoffs product/market growth matrix suggests that a business attempts to grow depend on whether it markets ne! r e'isting products in ne! r e'isting &arkets( )e i$enti"ie$ " ur categ ries " r gr !th: Market *enetrati n Market De+e, #&ent *r $uct De+e, #&ent Di+ersi"icati n Stu$ent Task In gr u#s " - r . research the a/ +e . gr !th strategies an$ #re#are a * !er # int *resentati n that e'#,ains each # int( Be #re#are$ t #resent 0 ur "in$ings t the c,ass(

The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. These are described below: Market #enetrati n

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M a r k e t i n g Te c h n i q u e s : G r ! t h S t r a t e g i e s
Market penetration is the name gi en to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achie e four main ob!ecti es: " Maintain or increase the market share of current products # this can be achie ed by a combination of competiti e pricing strategies$ ad ertising$ sales promotion and perhaps more resources dedicated to personal selling " %ecure dominance of growth markets " &estructure a mature market by dri ing out competitors' this would re(uire a much more aggressi e promotional campaign$ supported by a pricing strategy designed to make the market unattracti e for competitors " )ncrease usage by existing customers # for example by introducing loyalty schemes A market penetration marketing strategy is ery much about *business as usual+. The business is focusing on markets and products it knows well. )t is likely to ha e good information on competitors and on customer needs. )t is unlikely$ therefore$ that this strategy will re(uire much in estment in new market research.

Market $e+e, #&ent Market de elopment is the name gi en to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy$ including: " ,ew geographical markets' for example exporting the product to a new country " ,ew product dimensions or packaging: for example " ,ew distribution channels " -ifferent pricing policies to attract different customers or create new market segments *r $uct $e+e, #&ent .roduct de elopment is the name gi en to a growth strategy where a business aims to introduce new products into existing markets. This strategy may re(uire the de elopment of new competencies and re(uires the business to de elop modified products which can appeal to existing markets. Di+ersi"icati n -i ersification is the name gi en to the growth strategy where a business markets new products in new markets. This is an inherently more risk strategy because the business is mo ing into markets in which it has little or no experience. /or a business to adopt a di ersification strategy$ therefore$ it must ha e a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.