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ANSOFF THEORIES OF MARKETING
The Ansoff Growth matrix is another marketing planning tool that helps a business determine its
product and market growth strategy
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The output from the
Ansoff product/market matrix is a series of suggested growth strategies which set the direction
for the business strategy
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Market penetration seeks to achieve four main objectives:
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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”
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It is likely to have good information on competitors and
on customer needs
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Market development
Market development is the name given to a growth strategy where the business seeks to sell its
existing products into new markets
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g
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Product development
Product development is the name given to a growth strategy where a business aims to introduce
new products into existing markets
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A strategy of product development is particularly suitable for a business where the product needs
to be differentiated in order to remain competitive
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This is an inherently more risk strategy because the business is moving into markets in which it
has little or no experience
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However, for the right
balance between risk and reward, a marketing strategy of diversification can be highly
rewarding

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