Question

1. . Igor Ansoff a renowned marketing professor in strategic and marketing management conceptualized a logical adoption and selection of a Product-Market Growth Strategy. Explain what he meant by this concept of logical adoption and selection of Product-Market Growth Strategy

Answer 1

IGOR ANSOFF Product Market Growth Matrix help the business to decide their product and growth strategy on the basis of following:

Products

Existing New

Existing Market penetration Product development

markets   

New Market Development Diverfication

MARKET PENERATION:

TO SELL EXISTING PRODUCTS IN THE EXISTING MARKETS.

Peneration means making incerased sales to present customers,without chnging the product in the major way which require greater spending on advertisment and Personal selling. Market Peneration can be achived through following:

• Increasd in market share
• Incerase in product usage/Utilities
• Incerases in frequancy usage
• Incerase in quantity usage

MARKET DEVELOPMENT:

TO SELL EXESTING IN THE NEW MARKETS.

This straregy can be achived through following:

• New geographical markets
• New product dimensions or paking
• Different product polocies to attract the different customers
• Creating new market segments

PRODUCT DEVELOPMENT:

TO SELL NEW PRODUCT IN THE EXISTING MARKETS'

The seeks the growth by offering the modified or new prodcts to current market segments.

Product development can be achived through following:

• Adding new feature to product , product refinement.
• Developing a new generation product
• Developing new product for the same market segment.

DIVERSFICATION:

TO SELL NEW MARKETS IN THE NEW MARKETS.

Involves starting up are acquiring business outside the company current product and markets.

This straegy isi risky because it does not relay upon Either the company product is successful or its position in already established market.

With the above anaysis the entity should adopt most apporiprate strategy for better improvrment.