Product development market penetration market development

Market development and market penetration were two of four distinct company growth strategies identified by Igor Ansoff in a "Harvard Business Review" article. Product development and product diversification were the other two. Market development is the use of an existing product or service offering to attract new customer market, whereas market penetration is an effort to dig deeper within an existing marketplace. Market penetration is the least risky of the four growth strategies, according to the Quick MBA website. It involves additional marketing or more assertive sales efforts to penetrate more deeply into an existing customer base. Increased market share is a common marketing objective of companies using this strategy.

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Product-Market Matrix

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Product-Market Matrix - Productfolio

Ansoff's Matrix is a marketing planning model that helps a business determine its product and market growth strategy. These are described below:. Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.
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Ansoff Matrix

As the founder of a startup, you will undoubtably find yourself forced to make countless important decisions that, collectively, will determine the overall success of your company. These decisions may feel small when they involve things like who to hire and when , but they will almost certainly feel more consequential when they involve things like optimizing sales models , pricing models , and high impact growth strategies. Will you create a new product? Improve your existing product?
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The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. Each alternative poses differing levels of risk for an organization:. In market penetration strategy, the organization tries to grow using its existing offerings products and services in existing markets. In other words, it tries to increase its market share in current market scenario.
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