Ansoff matrix: what it is and why it is important to know it

Amirmukaddas

For our usual appointment with marketing theories , after having analyzed how a strategic marketing plan is developed and what is meant by marketing mix , today it is the time to discover together the famous Ansoff Matrix, explaining what it is and why it is important in modern marketing. Ansoff matrix: what is it What is the Ansoff Matrix? The Ansoff matrix , also called the product-market matrix , is a marketing tool created by the American but Russian-born mathematician, Igor Ansoff . This model is used by the company to have a complete picture of what the possible strategies could be useful for increasing the potential of its business, through the analysis and intersection of two fundamental elements for any company: Product; Market; The products can be divided into: existing products.

New products; Markets, however, can be differentiated into two types: existing markets; new Denmark Telegram Number Data markets; Through the intersection of the four elements mentioned above, we can have a clearer picture of the strategies that can be adopted by the company and the opportunities that emerge from the study of the markets and products. Ansoff matrix: explanation Specifically, it is possible to identify four possible paths for a company to take. Market Penetration Market penetration (intersection of existing product with existing market), applies when a company decides to continue producing the same type of product for the same market. The objective therefore in this case is to increase one's market share to acquire more customers, cutting out competitors.



Usually through competitive pricing policies and aggressive communication campaigns, aimed at constantly acquiring new customers and taking them away from the competition. This market strategy 9 times out of 10 is not sustainable in the long term, given that the competition factor for a company is based only on price. ansoff matrix Product development Product development (intersection between new product and existing market), where in this case a company operating in a certain market tries to increase its shares and win more customers by developing products different from traditional ones. Example in the catering sector, where a target has been identified, an attempt is made to offer it an ever-changing menu, so as to convince the customer to return.