9609 · 8.2.2
Approaches to marketing strategy flashcards
Revision flashcards for Cambridge 9609 Approaches to marketing strategy (syllabus 8.2.2). Flip, recall, then mark a real past-paper question.
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Market penetration?
More sales to current customers — promotions, loyalty (lowest risk).
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Market development?
Enter new country/segment with current product.
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Product development?
New product for existing market — NPD (8.1.2).
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Diversification?
Unrelated product + new market — highest risk/reward.
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Related diversification?
Some synergy with existing business — moderate risk.
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Unrelated diversification?
No core competency link — conglomerate risk.
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Link to 6.2?
Ansoff is core growth strategy tool in corporate planning.
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Exam technique?
Name strategy → case evidence → risk → recommendation.
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What is Market Penetration in the Ansoff Matrix?
A growth strategy where a business aims to increase its market share with existing products in existing markets. It is the lowest-risk strategy, often using tactics like competitive pricing and increased promotion.
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Define the Market Development strategy.
A growth strategy where a business sells its existing products into new markets. This can involve new geographical areas, new demographic segments, or new distribution channels.
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What does the Product Development strategy involve?
A growth strategy where a business introduces new products into its existing markets. It relies on brand loyalty and a deep understanding of the current customer base.
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Explain the Diversification strategy from the Ansoff Matrix.
The highest-risk growth strategy, which involves developing new products for new markets. The business has little experience in either area, making failure a significant possibility.
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What is the primary purpose of the Ansoff Matrix?
It is a strategic marketing planning tool that helps a business determine its product and market growth strategy by systematically considering the options and their associated levels of risk.