A marketing expansion grid is a tool used by businesses to identify potential markets and evaluate their suitability for expansion. It is a visual representation of the various factors that a business must consider when expanding into new markets. These factors can include the size and growth potential of the market, the competition, the cost of entry, and the resources and capabilities of the business.
One way to use a marketing expansion grid is to plot potential markets on a grid, with each axis representing a different factor. For example, the x-axis might represent the size and growth potential of the market, while the y-axis represents the cost of entry. This allows a business to easily see which markets are the most attractive based on their size and growth potential, as well as their cost of entry.
Another way to use a marketing expansion grid is to evaluate the resources and capabilities of the business. This might involve considering the company's financial resources, its production capabilities, and its distribution channels. By evaluating these factors, a business can determine which markets are the most suitable for expansion based on its current resources and capabilities.
There are several benefits to using a marketing expansion grid. First, it allows a business to systematically evaluate potential markets and make informed decisions about expansion. Second, it helps a business to prioritize its expansion efforts, focusing on the markets that offer the most potential for success. Third, it can help a business to identify and address any weaknesses or limitations that may prevent it from successfully expanding into a particular market.
Overall, a marketing expansion grid is a useful tool for businesses looking to expand into new markets. By systematically evaluating potential markets and identifying the resources and capabilities needed to succeed, a business can make informed decisions about expansion and prioritize its efforts accordingly.
Market expansion grid of apple inc Free Essays
Guest contributors may include links in their content and we make NO representation regarding the suitability of these products. Image courtesy of As an example, the author refers to research conducted in the watch market, where value was the dominant decision variable on which to segment consumers. Existing Products New Products Market Penetration Product Development Market Development Diversification Existing Premium Strategic management Marketing Investment Product Market Structure pioneer in the expert of electric fans from Pakistan. Typically, a brand uses this product marketing strategy when it gets the most from existing markets and products. Most often, this means that marketers need to use new lifestyle images and adapt all their visuals according to relevant market trends. I also published a post on what the Market Product Grid is and how Marketing plays a role in every stage of the four development strategies. What Are Product Expansion Strategies? Through horizontal diversification, the glass manufacturer sees the opportunity to offer specialized cement products with which to build glass brick walls.
Finally, some products or business units simply age and die. Healthcare marketers must strive to proactively monitor their surroundings too, among other things, detect growth opportunities that can be exploited. May have grown too fast or entered areas where it lacks experience and the risk increases. Conglomerate diversification happens when a company buys another company to diversify offerings. The increased use and popularity of the Internet and the availability of high-speed networks have gradually changed the way we do computing.
For example, would a price decrease result in a price war and decrease profits altogether? Would our audience pay a higher price for more perceived value? The Product Market Expansion Grid, also called the Ansoff Matrix, is a tool used to develop business growth strategies by examining the relationship between new and existing products, new and existing markets, and the risk associated with each possible relationship. In such instances, customers may be aware of a product but for some reason are not purchasing it. This strategy involves some risk, as it leverages existing products in new markets. The Product Market Grid was developed by Igor Ansoff in 1957 and first published by Harvard Business Review. Potentially new pricing structures to offer start-ups an incentive.
Could it be just me or does it seem like some of these comments appear as if they are coming from brain dead folks? For software companies that can be by offering different bundles of solutions. Background and Market Research Introduction Apple Inc. Marketing Plan for Market Development The market development strategy is more interesting for the marketing department. Steve Jobs Security Apple Inc Jude Title of Paper: Apple Inc. The marketing department of our 3D rendering company has been exploring the topic in terms of furniture business and eCommerce. It is very important for the company to choose what strategy the company should go after. Market Development Market development is a growth strategy that involves the introduction of current products into new markets.
Market Penetration Market penetration has the lowest risk level of all four strategies. Market development is a growth strategy that selling the existing product into new market segments. In short, you are aiming for more market share with your existing products, selling to your current customer segment. As it stands now, there are three separate, unique diversification strategies: concentric diversification, horizontal diversification, and conglomerate diversification. First, the competition may be such that there is no room for growth within the current market. This way, the company can reach new customers, expand the business and stay ahead of the competition. But think about it: just one part-time translator could build an extra 100,000 customers.
The product development strategy aims to market new products to existing markets. What resources are needed? Marketing has the main responsibility for achieving profitable growth for the company. Market Penetration Market penetration is a growth strategy that seeks to increase the use of current product offerings by current customers. This strategy is typically used to achieve one or more of the following objectives. In the first step, CMS Inc aka buying persona. With new products to promote, brand marketers have to renew their marketing and promo campaigns.
Using a Product/ Market Grid for Successful Marketing Strategy
It has a basic calendar and collaboration tools. Do you have any suggestions for aspiring writers? It does this by examining the link between existing products and new offerings, new and existing markets, and the risk associated with the relationships between these various elements. Because the firm is expanding into a new market, a market development strategy typically has more risk than a market penetration strategy. Maybe featuring the convenience or safety of not having to take kids out of the car added to a marketing campaign designed to increase the appeal of this product among women. Market penetration is a growth strategy that increase sales to the existing market without changing the existing product. For instance, if you choose value segment 3, your message might show a woman in expensive jewelry and an evening gown getting into a Rolls while wearing your watch.
Understanding the Product Marketing Expansion Grid
For an effective Market Penetration planning tactic, furniture brands might need different types of images and first-class product videos. Often synergies can be seen. I hold a PhD in Marketing from USF. This too assists marketers in the development of appropriate expansion strategies. What is Diversification marketing? In the next step, marketing is responsible to penetrate the market to increase the market share. Here too, there are a number of tactics to enter and develop a new market for existing products. A common new market involves moving a product from a niche market to a larger target market.
To draw more attention to a product, furniture manufacturers, for example, can improve its quality, revamp business processes, get on new eCommerce platforms and invest in advertising. The traditional four box grid or matrix Ansoff model Alternative Ansoff style matrix A revised version of the Ansoff matrix featuring a 3×3 or nine box grid or matrix. The first step in creating a successful marketing strategy is identifying demographic, geographic, psychographic, and behavioral factors of the marketplace that might impact product choice — in this case, elements might include: price consciousness, health consciousness, desired mouth-feel, adults, children, male, female, etc. The matrix aids growth plans through the introduction of existing or new products, in existing or new markets. Marketing segmentation is the process of dividing a population, which by its very nature is full of diversity, into more homogeneous subgroups based on criteria that reflect meaningful differences to the organization. It focuses on the current market with current products. Horizontal diversification: It involves developing businesses within an industry with products designed for one another, such as automobiles designed for sale at retail stores which sell accessories such as windshield wipers.