MARKETING THEORIES - EXPLAINING THE ANSOFF MATRIX

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·      MARKETING THEORIES

·      Ansoff Matrix

·      Balanced Scorecard

·      The Marketing Mix

·      The Communications Mix

·      SWOT Analysis

·      Stakeholder Mapping

·      The consumer decision making process

·      Porters Five Forces

·      The GE Matrix

·      The Marketing Environment

·      Segmenting consumer markets

·      Maslow's hierarchy of needs

·      Boston Consulting Group Matrix

·      PESTEL Analysis

·      RABOSTIC planning model

·      The PESO model


   MARKETING THEORIES - EXPLAINING THE ANSOFF MATRIX

The Ansoff matrix was invented by Igor Ansoff in 1965 and is used to develop strategic options for businesses. It is one of the most commonly used tools for this type of analysis due to its simplicity and ease of use.

As the diagram demonstrates, the matrix will give managers four possible scenarios, or strategies for future product and market activities.




 Market Penetration

This strategy focuses on increasing the volume of sales of existing products to the organization existing market.

Questions asked:

·         How can we defend our market share?

·         How can we grow our market?

Product Development

This strategy focuses on reaching the existing market with new products.

Questions asked:

·         How can we expand our product portfolio by modifying or creating products?

Market Development

This strategy focuses on reaching new markets with existing products in the portfolio.

Questions asked:

·         How can we extend our market?

·         Through new market sectors?

·         Through new geographical areas?

Diversification

This strategy focuses on reaching new markets with new products. Diversification can be either related or unrelated.

Related Diversification: The organization stays within a market they have familiarity with.

Unrelated Diversification: The organization moves into a market or industry they have no experience with. This is considered a high risk strategy




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