ANSOFF MATRIX

MODEL
BY :- KRISHNA
 INTRODUCTION
 The Ansoff matrix is a strategic planning tool that
provides a framework to help executives, senior managers,
and marketers devise strategies for future growth.
 The Ansoff product market growth matrix is also known as
‘product-market components’ which is distributed into
four segments with two dimensions i.e. Existing and new
markets & new and existing products.
1. MARKET PENETRATION
• Market penetration is a situation where the firm increases the
existing products into existing markets.

• The concept of increasing sales of existing products into an

existing market.
2. MARKET DEVELOPMENT
 Market development is a segment where the firm markets existing
products to new markets. This structure aims at targeting the
untapped markets which may include exporting if a firm was
initially restricted to domestic markets.

 It focuses on selling existing products into new markets.

3. PRODUCT DEVELOPMENT
 Product development focuses on introducing new products to an
existing market.

 Product development describes a situation where the market is the

same and the product is new or in the short existing market and new
products prevailing in the market.
4. DIVERSIFICATION
 Diversification includes the case for new markets along with new
products. This situation is the riskiest one since the firm needs to
sell unknown products in unknown markets.

 The concept of entering a new market with altogether new

products.