What is the Ansoff’s Matrix Model in Marketing Planning?
In this article you will learn about:
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What is Anoff’s Matrix Model used for?
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What is the Ansoff’s Matrix Model in Marketing Planning?
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What is Ansoff’s Matrix Model Diagram?
What is Anoff’s Matrix Model used for?
After a certain time of launching your product in the market, you need to know how to increase your product sales, but you don’t know the knowhow. That question makes millions of people struggling and spending marvelous time in thinking of expanding their business.
Ansoff's Matrix is one of the most important tools to analyze your product's growth and increase your opportunities to select a new marketing strategy that increase your business growth.
What is the Ansoff’s Matrix Model in Marketing Planning?
The Ansoff's Matrix is based on analyzing two aspects Product Development and Marketing Development so the Matrix based on four quadrants.
1. Existing Product in Existing Market
"Market Penetration"
2. Existing Product in New Market
"Market Development"
3. New Product in Existing Market
"Product Development"
4. New Product in New Market
"Diversification"
What is Ansoff’s Matrix Model Diagram?
A. Existing Product in Existing Market "Market Penetration in Ansoff’s Matrix":
Market penetration examples:
- Selling more of the existing products in existing markets.
- Options (applicable for non saturated markets): this could be achieved through:
- Persuade existing users to use more.
- Persuade non-users to attract consumers from competitors.
- Highly Competitive actions (Price, Promotion).
B. Existing Product in New Market "Market Development in Ansoff’s Matrix":
Market Development in Anoff’s Matrix
means Expanding into new market with existing products. It may be:
1. New geographical markets.
2. New market segments.
3. New users for products.
C. New Product in Existing Market "Product Development in Ansoff’s Matrix".
There are three approaches to make a
product development
:
- Modified versions of the existing products, by tailoring the products more specifically to the needs of some existing & or new consumers.
- High Investment (R&D), good quality, high service, compatible promotional and pricing strategy.
· Cross Selling (to sell more than one product to different segments).
D. New Product in New Market "Diversification in Ansoff’s Matrix":
- New products into new market is am ore risky strategy , as the organization is moving into new areas in which it has little or no experience. Instances are rare & occur when there are no other alternative.
- Merging and Acquisitions are also considered as
diversification in Ansoff’s matrix
.
Related article to Anoff’’s Matrix:
Related articles to competitive marketing strategies:
1. What are competitive marketing strategies?
2. How to develop a sustainable competitive advantage strategy (based on Porter’s Generic Strategy)?
- How to develop a competitive advantage strategy? (Focus marketing strategy)
- How to develop a competitive advantage strategy? (Cost Leadership marketing strategy)
- How to develop a competitive advantage strategy? (Differentiation marketing strategy)
3. How to develop a Competitive Positioning Strategy for your company?
Related articles to marketing strategies:
1. What is the difference between Marketing Strategies and Strategic Marketing?
2. How to develop a marketing strategy in 4 steps?
3. How to develop segmentation, targeting and positioning in marketing strategies?
4. Segmentation:
- What is a Market Segmentation Analysis in marketing planning?
- How to do market segmentation? (Part 1 and Part 2)
- How to do market segmentation in Business to Business Context?
5. Targeting: What is a targeting strategy in marketing planning?
6. Positioning:
- How to write a brand positioning statement and product positioning strategy?
- How to evaluate brand positioning statement and product positioning strategy?
