Explains the four segments of the Ansoff Matrix and Porter's Generic Strategy, the three Distinctive Capabilities, the Boston Matrix, and the effect of strategic and tactical decisions on human, physical and financial resources
Ansoff Matrix
Marketing planning tool which helps a business determine its growth strategy.
Market Penetration:
Businesses focus on selling existing products in an existing market.
Least risky, lower potential rewards.
Seeks to achieve four main objectives:
- Maintain or increase market share of current products
- Restructure a mature market by driving out competitors
- Secure dominance of growth markets
- Increase usage by existing customers
e.g. Tesco launching a £5 million advertising campaign
Market Development:
Businesses seek to sell existing products in a new market.
More risky strategy than market penetration due to the targeting of new markets.
There are many possible ways of approaching this strategy:
- New geographical markets
- New product dimensions or packaging
- New distribution channels (e.g. moving to e-commerce and mail order)
- Different pricing policies to attract different customers or create new market segments
e.g. Google launching their search engine in China
Product Development:
A business aims to introduce new products into existing markets.
May require the development of new competencies and the business to develop modified products
which appeal to existing markets.
A successful product development strategy places the marketing emphases on:
- Research & development and innovation
- Detailed insights into customer needs
- Being first to market
e.g. Cobra Beer launching a draft version of its bottled beer.
Diversification:
A business sells new products in new markets
High risk strategy due to little experience in new market with new product
Chance of being highly rewarding
e.g. NESCAFE developing a range of soft drinks
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