Ansoff's matrix

HideShow resource information
A decision may be defined as...?
A choice between two or more alternatives
1 of 12
What does diversification involve?
Selling completely new products in to new markets
2 of 12
What does market development involve?
Increasing sales of present products by selling them to new markets.
3 of 12
What is product development?
Selling a new product to present markets
4 of 12
What does market penetration involve?
Increasing sales of present products to present markets
5 of 12
Why may a business look to enter new markets?
Where there is fierce competition in present ones
6 of 12
What does related diversification refer to?
Staying in the same industry, e.g a confectioner producing a different types of chocolate bar
7 of 12
What does unrelated diversification involve?
Where a business enters a completely different industry.
8 of 12
The ore unrelated the diversification, the greater of which two factors?
Cost and risk
9 of 12
Three examples of product development
1.Introducing a new size. 2.Making the product longer-lasting. 3.Changing the material/ingredients/colour
10 of 12
How may a business partake in market penetration? 2 factors
1. Increasing quantity purchased by existing customers or Attracting users of competitor's brands
11 of 12
In which two ways could a business engage in market development?
1.Targetting new segments of different age groups, social and economic class in present geographical markets. 2. Targetting new geographical markets, nationally or internationally
12 of 12

Other cards in this set

Card 2

Front

What does diversification involve?

Back

Selling completely new products in to new markets

Card 3

Front

What does market development involve?

Back

Preview of the front of card 3

Card 4

Front

What is product development?

Back

Preview of the front of card 4

Card 5

Front

What does market penetration involve?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Aid's for decision making: Ansoff's matrix resources »