this is where you can use an approach like the ansoff matrix to think about the potential risks of each option, and to help you devise the most suitable plan for your situation. it has given generations of marketers and business leaders a quick and simple way to think about the risks of growth. it can help you weigh up the risks of your career decisions, and choose the best option as a result. product development, in the lower right quadrant, is slightly more risky, because you’re introducing a new product into your existing market. you can do this by finding a new use for the product, or by adding new features or benefits to it.
you’re trying to sell more of the same things to different people. conduct a risk analysis to gain a better understanding of the dangers associated with each option. you can make sure it really is the best one with one last step: use decision matrix analysis to weigh up the different factors in each option, and make the best choice. this is useful as it shows the difference between product extension and true product development, and also between market expansion and venturing into genuinely new markets (see figure 2, below). next, look at the risks associated with each one, and develop a contingency plan to address the most likely risks. subscribe to our free newsletter, or join the mind tools club and really supercharge your career!
this strategy involves selling more to current customers and to new customers who can be thought of as being in the same marketplace. you should give this strategy careful consideration if you are not in a position to invest heavily or are not comfortable with taking risks, as the amount of risk associated with this strategy is relatively low. an excellent example of such a strategy would be for you to identify a change in the age distribution of your product users and to then aggressively market your product to this age group. your role in the discussion senior executives will have in defining their strategy is that of providing the market intelligence or customer feedback that helps to inform the executive team of the current dynamics of the market.
if the team’s chosen approach defines the growth market as a ‘new’ one then a market penetration strategy will be replaced with one of market development, which is covered in the next section. with a mature market there are no more demographic sectors to exploit and the only way to attain market share is to take it from competitors. the tactics of this approach all aim to ‘tie in’ your customers to your product or service by making it more difficult for them to move to another supplier. a successful market penetration strategy relies on detailed knowledge of the market and competitor activities. you may also be interested in: introduction to the ansoff matrix, market penetration strategy, market development strategy, product development strategy and diversification strategy.
key points market penetration. product development. market development. diversification. market penetration is one of the four alternative growth strategies in the ansoff matrix. a market penetration strategy this model is essential for strategic marketing planning where it for market development strategy., market penetration examples, market penetration examples, ansoff matrix examples, ansoff matrix theory, igor ansoff. the ansoff matrix: market penetration in a market penetration strategy, the firm uses its products in the existing market. in other words, a firm is aiming to increase its market share with a market penetration strategy.
a market penetration marketing strategy is very much about “business as usual”. the business is focusing on markets dominate the market the ansoff matrix way | market penetration strategy explained are you settling for “just fine”? a this strategy ansoff termed ‘market penetration’. this is only possible where markets are still growing,,
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