This strategy assumes that the existing markets have been fully exploited thus the need to venture into new markets. This can be made possible through further market segmentation to aid in identifying a new clientele base. In this strategy, the business sells its existing products to new markets. It may also be known as Market Extension. The third marketing strategy is Market Development. A good example is car manufacturers who offer a range of car parts so as to target the car owners in purchasing a replica of the models, clothing and pens. By doing so, it can appeal more to the already existing market. By modifying the product one would probably change its outlook or presentation, increase the products performance or quality. Product development can differ from the introduction of a new product in an existing market or it can involve the modification of an existing product. In product development growth strategy, new products are introduced into existing markets. Thus if the head of the toothbrush is bigger it will mean that more toothpaste will be used thus promoting the usage of the toothpaste and eventually leading to more purchase of the toothpaste. Research has shown that the toothbrush head influences the amount of toothpaste that one will use. A good example is the usage of toothpaste. Another way in which market penetration can be increased is by coming up with various initiatives that will encourage increased usage of the product. In Market Penetration, the risk involved in its marketing strategies is usually the least since the products are already familiar to the consumers and so is the established market. This will be possible through the use of promotional methods, putting various pricing policies that may attract more clientele, or one can make the distribution more extensive. In this strategy, there can be further exploitation of the products without necessarily changing the product or the outlook of the product. When we look at market penetration, it usually covers products that are existence and that are also existent in an existing market. The Ansoff Matrix has four alternatives of marketing strategies Market Penetration, product development, market development and diversification. It is believed that the concept of strategic management is widely attributed to the great man. Ansoff was primarily a mathematician with an expert insight into business management. This is usually determined by focusing on whether the products are new or existing and whether the market is new or existing. The Ansoff Matrix also known as the Ansoff product and market growth matrix is a marketing planning tool which usually aids a business in determining its product and market growth.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |