Ansoff Matrix

Ansoff Matrix

Ansoff matrix is used to analyze the company growth or position and help to prepare to strategy to entice the customer and be in the mind of the consumer.

There are four figurative diagrams which is used before planning for any action taken by marketing head.

1.   Market Penetration - This is a marketing strategy of developing business by selling more of existing products in existing markets. There is many method is used to make the product available and increase brand presence in the market.  This may be undertaken through cross-selling, increasing promotions or distribution, taking competitors‟ customers, expanding the market or increasing product usage.                                     

Cross –Selling- This is the process where two offer is given in the market to increase the sales lead.  This is very strategically prepared by the organization head so that customer get satisfaction from offer and also company could stock out their product.

Promotion – This is very important part of the product success. This is the one and only important factors which increase brand presence in the consumer mind. Today consumer is very psyche mind if you are not shown you will not get noticed. Therefore company give 70% focus on the promotion and rest on the sales strategy. 

 2.    Market Development- In the competitive market to be first, organization should always focus on expansion by finding new market. This can be done analyzing market demand and needs of the consumer.   A marketing strategy of taking an existing product to new markets needs market research so that company finds the right market.

 3.      Product Development- Product Development increases the revenue and sustain in existing market when existing products sales goes down. Company should concentrate on the product quality and use latest technology to make the product excellence. Product development is the only source for the growth when existing market does not take any interest in their brand.

 4.       Product Diversification-  A marketing strategy that a firm may pursue to develop new products in new markets. Diversification refers to situation where a firm stays broadly within the industry, but needs to acquire new competencies and resources. Product diversification gives the least place of the organization leverage from the existing competencies and resources.

There are several diversification Strategies:

·         Horizontal Diversification: The Company is developing a new product or activity capable of satisfying the same clientele, even if the new products are technologically independent of the existing products.

·   Vertical Diversification: The Company starts to make the work of its suppliers and/or customers.

·  Concentric Diversification: The Company develops new products/activities with a complementary technology to existing products/activities. These products may attract a new group of customers and there will be a transfer of key skills.

·         Diversification by conglomerate: the company has different products/activities for various markets. The firm now settles on a market where it has no previous experience nor industry but it could attract new groups of customer

Glossary-

Cross Selling - Selling different parts of a product range, that they have not previously bought, to an existing customer

Competitors - May be direct or indirect. Direct competitors provide the same products or services in the same market; indirect competitors provide similar benefits, or substitute benefits in the same market.

Distribution - The Place element of the marketing mix. It involves the process of getting the goods from the supplier to the user and involves channel management and physical distribution management.

Market Research- Gathering, analyzing data about the market to reduce risk and enable better marketing decisions to be made.

Positioning - The third stage of the target marketing process following segmentation and targeting. It is the creation of an image for a firm, product, service or brand in the minds of customers and compared with competitors. Firms and brands may be positioned by feature, benefit, user, country of origin and so on