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Market penetration diagram
Successful leaders understand that if their organization is to grow in the long term, they can't stick with a "business as usual" mindset, even when things are going well. They need to find new ways to increase profits and reach new customers. There are numerous options available, such as developing new products or opening up new markets, but how do you know which one will work best for your organization? This is where you can use an approach like the Ansoff Matrix to think about the potential risks of each option, and to help you devise the most suitable plan for your situation. The Ansoff Matrix was developed by H.
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Market Penetration | Learn the Top 10 Market Penetration Strategies
As soon as a company enters a new market, it strives for market penetration. The main objective behind the market penetration strategy is to launch a product , enter the market as swiftly as possible and finally, capture a sizeable market share. Market penetration is also, sometimes used as a measure to know whether a product is doing well in the market or not. Start Your Free Marketing Course.
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The Ansoff Matrix
Some business success stories happen overnight. Developed in by H. Igor Ansoff, the Ansoff growth matrix offers a simple and useful way to think about product and market development strategy. By looking at ways to grow via existing products and new products, and in new or existing markets customers , the matrix outlines four possible areas of opportunity for growth, which vary in risk:.
In the paper he proposed that product marketing strategy was a joint work of four growth areas: market penetration, market development, product development, and diversification. When displayed visually, these four areas create the Ansoff Growth Matrix. As part of a larger strategic planning initiative, an Ansoff matrix is a communication tool which helps you see the possible growth strategies for your organization.