- Instead of focusing on profitability or sales, The Ansoff Matrix outlines the options open to firms if they wish to grow, improve profitability and revenue. These options indicate how to manage the development of the product.
- In the matrix we can see that a business looking to increase sales and create growth is faced with four choices (these can be combined or mixed).
- Market Penetration - existing products for existing markets. This means they aim to increase sales within its present marketplace. They must be aware of what has made the product a success in the first place. The firms marketing strategy should be based on this existing relationship. There are several penetration strategies open to firms. These include: attracting new customers, attack competitor sales by adjusting the marking mix, increase consumption amongst existing users.
- Market Development - devlop markets for existing products.The objective will be to find…