ZIMBABWE EZEKIEL GUTI UNIVERSITY

FACULTY OF HUMANITIES, EDUCATION AND SOCIAL SCIENCES

DEPARTMENT OF SOCIAL WORK

COVER PAGE

SECTION A

REG NUMBER : R220735S

NAME : LEONARD MANDAZA

COURSE: ENTREPRENEURSHIP THEORY AND PRACTICE (CEN221)

QUESTION TITLE : Briefly describe the following marketing strategies in

relation to the Ansoff Matrix. Use practical examples in your answers ; market
penetration, diversification , market development , product development

SECTION B

LECTURER’S COMMENTS

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Introduction

The following marketing techniques are examined in this article in connection to the
Ansoff matrix.The following marketing strategies ,market penetration, diversification,
market development, and product development will be briefly discussed.These tactics
will be covered in detail when the article picks up steam.

Ansoff Matrix Marketing Strategy Table

Existing Products New Products

Existing

markets Market penetration Product Development

New

Markets Market Development Diversification

Definition of key terms

According to Paley (2021) ansoff matrix refers to the model that assists marketers in
finding chances to expand a company's income by creating new goods and services or
"tapping into" untapped markets. Whereas Mungai (2010) defined ansoff matrix as a
marketing planning model that helps a business determine its products and market
growth strategy.However one can notify that ansoff matrix is a two-by-two
methodology for planning and assessing growth efforts that is utilized by analyst
communities and management teams. Specifically, the tool assists stakeholders in
understanding the degree of risk connected to various growth strategies.

Market penetration
The process of introducing a new product or brand into a market is known as market
penetration. A brand can increase its public recognition and facilitate market
penetration by launching the product or brand at a cheap initial cost. The phrase
"market-penetration pricing" describes this.Increasing the market share of current
products in current markets is the main goal of the market penetration strategy as
postulated by Nandan (2005) .As an illustration, McDonald's offers reduced
combination meals and time-limited specials in an effort to grow its client base and
market share. They want to get new customers and get their current customers to
come in more often by using aggressive pricing techniques and advertising efforts.
Hence McDonald's has used a variety of strategies, such as strategic alliances, product
innovation, and targeted advertising, to draw in a large consumer base. Their
marketing strategies, which emphasize quality, market penetration price, and
convenience, constantly highlight the brand's key products and value proposition.This
is further supported by the market saturation theory that states that market share can
be expanded by a variety of strategies, including more aggressive pricing, better
distribution, or enhanced promotion. In the current market climate, businesses seek to
optimize sales by concentrating on market penetration.

Diversification

The term "diversification" describes adding additional products or services to your

current lineup that are either complementary or equivalent as assisted by Barbieri
(2008).It entails breaking into untapped markets or creating brand-new goods that
stand apart from what a business already offers.For instance, the search engine giant
Google expanded the range of products it offers by launching the Google Pixel
smartphone. Google's goal in entering the hardware sector was to enter a new market
and use its well-known brand and technological know-how to take on more
established smartphone makers.The portfolio theory provides justification for this
tactic. This theory states that by mixing various products and markets, diversification
can lower risk and foster synergy. Companies can distribute their business risk and
possibly make numerous uses of their current resources and capabilities by
diversifying their product and market portfolio.

Market Development
Introducing current items into new markets is the main goal of the market
development plan as postulated by Sheth (2011) .So market development is bringing
current items into new markets. For example Starbucks is venturing into novel global
markets, including Brazil and India. Starbucks sought to expand into unexplored
markets and bring its name and goods to a new audience by customizing its coffee
shop model to fit the tastes and customs of these nations Market diversification serves
as the theoretical foundation for this tactic. It implies that businesses can boost their
revenue streams and lessen their dependency on a particular market by branching out
into new areas. Targeting new geographic areas, demographic subgroups, or
distribution routes can all help with market development.

Product Development

As part of a plan for product development, new products are developed or old ones
are modified to fit the demands of the market that is product development Annacchino
(2011) .As an illustration, consider Nike, which is always coming out with new lines
of athletic clothing and footwear. Nike seeks to both attract new customers looking
for the newest in sports and fitness gear as well as meet the changing demands and
preferences of its current client base by providing cutting-edge designs, new
materials, and improved performance capabilities. Products go through distinct phases
of introduction, growth, maturity, and decline, according to the product life cycle
theory. Businesses can enhance their competitive advantage, expand their consumer
base, and prolong the life of their product range by consistently creating and
introducing new offerings.
Conclusion

All things considered, businesses use several marketing techniques within the Ansoff
Matrix to accomplish expansion. Increased market share is the goal of market
penetration; diversification implies breaking into new markets or producing new
goods; market development is the process of breaking into new markets; and product
development is the process of developing new or enhanced products for markets that
already exist to mention just a few.
Reference

Paley, N. (2021). The manager's guide to competitive marketing strategies.

Routledge.

Mungai, F. N. (2010). Growth strategies applied by the Institute of Advanced

Technology; the study of Ansoff model (Doctoral dissertation, University of Nairobi,
Kenya).

Nandan, S. (2005). An exploration of the brand identity–brand image linkage: A

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Guth, W. D., & Ginsberg, A. (1990). Guest editors' introduction: Corporate

entrepreneurship. Strategic management journal, 5-15.

Sheth, J. N. (2011). Impact of emerging markets on marketing: Rethinking existing

perspectives and practices. Journal of marketing, 75(4), 166-182.

Henard, D. H., & Szymanski, D. M. (2001). Why some new products are more
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Barbieri, C., Mahoney, E., & Butler, L. (2008). Understanding the nature and extent
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Annacchino, M. (2011). The pursuit of new product development: the business

development process. Elsevier.