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Ansoff's Matrix: A method by which businesses can classify their strategies for expansion.
It includes; Market Penetration, Product Development, Market Development and
Market penetration is the name given to a growth strategy where the business focuses on
selling existing products into existing markets.
Market penetration seeks to achieve four main objectives:
· Maintain or increase the market share of current products this can be achieved by a
combination of competitive pricing strategies, advertising, sales promotion and perhaps
more resources dedicated to personal selling
· Secure dominance of growth markets
· Restructure a mature market by driving out competitors; this would require a much more
aggressive promotional campaign, supported by a pricing strategy designed to make the
market unattractive for competitors
· Increase usage by existing customers for example by introducing loyalty schemes
A market penetration marketing strategy is very much about "business as usual". The
business is focusing on markets and products it knows well. It is likely to have good
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information on competitors and on customer needs. It is unlikely, therefore, that this
strategy will require much investment in new market research.
Market development is the name given to a growth strategy where the business seeks to
sell its existing products into new markets.…read more