174x Filetype PPTX File size 0.76 MB Source: www.hoddereducation.co.uk
Ansoff This theory builds on the concept of the marketing mix, which is studied earlier in the course. Igor Ansoff identified four key strategies that firms can pursue and demonstrated that the further a business moves away from market penetration the more risky it becomes. The idea of risk is a key area to consider when looking at this concept. Hodder & Stoughton © 2017 Ansoff’s matrix Hodder & Stoughton © 2017 Market penetration This involves a business trying to sell more of the same products, e.g. a typical strategy could be to use BOGOF or they could try and get customers to use more of the product, e.g. Head & Shoulders became frequent-use shampoo. Hodder & Stoughton © 2017 Product development Existing market but new products. Risky compared to market penetration as you are designing a new product, which is time consuming and expensive in terms of the research and development. Innovation though is key and can be very profitable with the right product, e.g. Dyson. Hodder & Stoughton © 2017 Market development Same product but new markets, e.g. Manchester United have taken their football brand to Asia during the off season. This can be quite an expensive approach in terms of the marketing budget but it offers the business a much larger potential market. Hodder & Stoughton © 2017
no reviews yet
Please Login to review.