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19.02.2016
The Product-Market Growth Matrix, also known as the Ansoff Matrix, is a business framework that has proven to be very useful in business unit strategy processes to determine business growth opportunities.
This framework remains a valuable model for communication around business unit strategy processes and business growth. Igor Ansoff (December 12, 1918 – July 14, 2002) was a Russian American, applied mathematician and business manager. He has consulted with hundreds of multinational corporations including, Philips, General Electric, Gulf, IBM, Sterling and Westinghouse. Business frameworks like Product-Market Growth Matrix are invaluable to evaluating and analyzing various business problems. Sample Wording Introducing New Product.Go-To-Market Strategies Product Launch Checklist - Brand-ProfilitySales and Marketing Success. If any of the 4Ps were problematic or were not in the marketing factor of the business, the business could be in trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its products will decrease.
Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls.
Marketers can expand the current product mix by increasing a certain product line’s depth or by increasing the number of product lines.
Access, distribution – Refers to providing the product at a place which is convenient for consumers. When setting a price, the marketer must be aware of the customer perceived value for the product.
What discounts should be offered to trade customers, or to other specific segments of your market? Information – Represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards?


People: refers to the employees of the organisation with whom customers come into contact with.
Process: refers to the processes and systems within the organization that affects its marketing process. Surround View delivers a 270° view around your BMW, giving you a new way of looking at the road. This occurs when the company acquires or develops new products that could appeal to its current customer groups even though those new products may be technologically unrelated to the existing product lines. The company moves into the business of its suppliers or into the business of its customers. This occurs when there is neither technological nor marketing synergy and this requires reaching new customer groups. The Matrix is also known as the Ansoff Matrix, the Product Market Expansion Grid, and the Growth Vector Matrix.
In this discussion, we go through a 2-prong approach to growth and evaluate the merits of various growth drivers.
Marketers do careful research on how long the life cycle of the product they are marketing and focus their attention on different challenges that arise as the product moves through the Life Cycle. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company’s resources and how to configure the product mix so that each product complements the other. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix. The price is very important as it determines the company’s profit and hence, survival. Three basic pricing strategies are: market skimming pricing, marketing penetration pricing and neutral pricing. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.
Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum.
Firms modify each element in the marketing mix to establish an overall brand image and unique selling point [Unique selling point: The unique thing about the product that makes consumers buy it.


These strategies normally try to change incidental clients to regular clients, and regular client into heavy clients.
These strategies often try to lure clients away from competitors or introduce existing products in foreign markets or introduce new brand names in a market. Sometimes used by large companies seeking ways to balance a cyclical portfolio with a non-cyclical one.
Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often; it will affect the demand and sales as well. Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions?
New markets can be geographic or functional, such as when we sell the same product for another purpose. Often there is a credibility focus in the communication to explain why the company enters new markets with new products.
Abell has suggested that a Three Dimensional Business Definition is superior to the Model of Ansoff.
Strategy is often to achieve economies of scale through more efficient manufacturing, more efficient distribution, more purchasing power, overhead sharing.
On the other hand diversification strategies also can decrease risk, because a large corporation can spread certain risks if it operates on more than one market.
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