product-market strategy

= Ansoff matrix
A marketing planning model Companies can either sell existing or new products; and they can sell them either in markets familiar to them (existing markets) or in new markets. The resulting two-by-two matrix gives four alternative strategies for increasing sales. One is to concentrate on selling more existing products into existing markets (market penetration), by such means as price reductions and increased advertising. This is regarded as a low-risk low-gain strategy offering few prospects of sustained growth in the longer term. Alternatively, an organization can modify or improve its existing products and sell these to current customers (product development); for example, a lawn-mower manufacturer might install a more powerful motor in its products. The third option is to sell existing products to a new market (market development) - for example, to export the current range of lawn mowers to America. These two strategies are medium-risk with good prospects for growth in the medium term. The highest-risk strategy is to develop new products for new markets (product diversification) - for example, for the lawn-mower manufacturer to develop printing machinery for the publishing industry. Despite the higher risk, this is considered the best strategy for long-term growth. See also defender strategy; prospector strategy
Product-market strategy

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • Product-Market Growth Matrix — The Ansoff Product Market Growth Matrix is a marketing tool created by Igor Ansoff and first published in his article Strategies for Diversification in the Harvard Business Review (1957). The matrix allows marketers to consider ways to grow the… …   Wikipedia

  • market penetration — penetration 1) The process of entering a market to establish a new brand or product. Market penetration may be achieved by offering the brand or product at a low initial price to familiarize the public with its name. This is known as market… …   Big dictionary of business and management

  • market development — A strategy by which an organization attempts to sell an existing product to new customers, usually by introducing the product in a new geographical area. See product market strategy …   Big dictionary of business and management

  • product development — A strategy for company growth that relies on offering modified or new products to market segments currently being served. See product market strategy See also new product development …   Big dictionary of business and management

  • market-product strategy — See product market strategy …   Big dictionary of business and management

  • product diversification — The strategy of marketing new products to a new set of customers. See product market strategy …   Big dictionary of business and management

  • Product Family Engineering — Product families/lines are quite common in our daily lives, but before a product family can be successfully established, an extensive process has to be followed. This process is known as product family engineering, product line engineering, and… …   Wikipedia

  • Product marketing — deals with the first of the 4P s of marketing, which are Product, Pricing, Place, and Promotion. Product marketing, as opposed to product management, deals with more outbound marketing tasks. For example, product management deals with the nuts… …   Wikipedia

  • Market analysis for product software — consists of a number of techniques that allow an organization to collect and disseminate information from their external environment of software products for use in determining their market strategy and actions. For example, market analysis helps …   Wikipedia

  • Market segmentation — Marketing Key concepts Product marketing · Pricing …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.