The Ansoff Market Grid is a model that has proven to be very useful in business unit strategy process to determine business growth opportunities. The Market Grid has two dimensions: Products/Services and Markets.
MARKET PENETRATION (CURRENT PRODUCTS / SERVICES IN EXISTING MARKETS)
What: Increase Market Share – Sell current products/services in existing markets
Why: Re-establish relationships with past clients (over one year.) Turn incidental clients into regular clients, and regular client into heavy volume clients.
How: Competitive Phase Approach, Innovative Products/Services, Long Term Agreements, Value-Adding, Marketing and Advertising Campaigns, Tradeshows, Presentations. Market Research Investment, CRM (Customer Relationship Management), Surveys, etc.
MARKET DEVELOPMENT (CURRENT PRODUCTS / SERVICES IN NEW MARKETS)
What: Sell current products/services in new markets
Why: Strive to entice clients away from your competitors, or introduce existing products/services in new markets. New markets can be geographic or functional, such as when we sell the same product/service for a new division within the same organization.
How: Brand Marketing Strategy – Modifications require customization
Build Brand Alliances/Partnerships – Better Networking
Adding Value to Brand – Brand marketing and awareness campaigns, tradeshows, 1-to-1 presentations
PRODUCT / SERVICE DEVELOPMENT: (NEW PRODUCTS / SERVICES IN EXISTING MARKETS)
What: Sell new products/services in existing markets.
Why: Promote other services to the current target market; value-added or introduce completely new services
How: Cross-selling (Vertical Integration) through existing communication channels. Quality Assured Programs, Models, Gated Systems, Training and Seminars, Team Selling, etc.
DIVERSIFICATION (NEW PRODUCTS / SERVICES IN NEW MARKETS)
What: Sell new products/services in new markets.
Why: Branch out into new markets with new products/services to reinvent offering
How: Co-brand with strategy alliance, become acquired and join large corporation, aggressive marketing strategy including cold calls
ACTION PLAN :
1. Identify Priorities
2. Define Measurable-Results and Set Budget
3. Determine ROI within an Established Time-frame