ANSOFF’S MATRIX - MARKET DEVELOPMENT Flashcards
What is market development
Market development: The strategy of achieving growth through targeting new customers with existing products.
What are examples of market develpment
Product - Changing packaging
Price - Maybe targeting a new income bracket
Promotion - Emphasising different benefits of the product
Place - Increasing availability in new areas
Why would you want to use market development
HAve a successful product and a model that is replicable in new markets
Fall in size of target market
Growth in another market
Availability of funds
Reduce spare capacity
What is the value of market development
Little need for expensive product development
Build on business’s reputation
May enable more efficient use of current resources
What are the drawbacks of market devlopment
Need for market research - new customers and competitors
May face cultural difficulties
Diseconomies of scale - communication/ coordination challenges
