1. Marketing Strategies – How to choose?
Strategy is about the future…
Strategy must be achievable…
Strategy is company specific…

2. Ansoff’s Matrix Igor Ansoff sought to categories strategies
His model outlines potential growth strategies by increasing sales in existing or new markets using existing or new products
Model provides four main strategy types to choose between
Considers high risk / high reward / vs. lower risk / lower reward

3. Ansoff’s Matrix – 4 types of marketing strategy
PRODUCTS
Existing
New
Market Penetration
Product Development
Market Development
Diversification
Existing
Increasing Risk
MARKETS
New
Increasing Risk

4. The 4 quadrants: Market Penetration
Focus on building sales of existing products within existing markets – increase market share 
known market, established product
simplest and most predictable
least risky 
may be least potential for growth
not stretching the scope of the firm

5. The 4 quadrants: Market Development
Find a new market for an existing product 
knowledge of the product
know what works, who likes it, etc 
don’t know about new market
requires a lot of research to reduce risk
can dilute the efficacy of the product to the previous markets if firm isn’t careful

6. The 4 quadrants: Product Development
Launching a new or improved product to an existing market 
known customers & market
useful when extension strategies are required for an older product
it may take little to inject new energy into an old product 
any new product carries risks
requires significant research & testing

7. The 4 quadrants: Diversification
Targeting a new market with a new product 
potential reward is very high, esp. if it’s an untapped market
helps when existing products and markets offer little opportunity
helps firm to diversify, potentially reducing risk
helps firms move away from markets in decline 
risky!!
lots of unknowns - new product and new market

8. Diversification High risk and low risk
Related diversification is lower risk, eg integration (merger/takeover)
With a firm in the same industry but at a different stage of production
Tesco buying a food manufacturer
Apple buying PC World
Unrelated is higher risk
The business will have no experience of the new product and market

9. Diversification Firms may seek to mitigate the risk
Buy an existing firm in the industry
Asda buying B&Q is less risky than starting from scratch
Enter only successful and growing markets
Particularly if the firm has a strong brand, the risks are reduced