Using the ansoff matrix to develop marketing strategy

The Ansoff Matrix is used in the strategy stage of the marketing planning process. It is used to identify which overarching strategy the business should use and then informs which tactics should be used in the marketing activity. Sometimes an organisation will adopt two strategies to reach different markets.

The four strategies of the Ansoff Matrix are: Market Penetration: This focuses on increasing sales of existing products to an existing market. Product Development: Focuses on introducing new products to an existing market.

The model is based on the assumption that there are two primary ways to grow a business: by selling new products (product development) or by targeting new markets (market development). By combining these two paths, the Ansoff Matrix offers four strategies for business growth:

Using the ansoff matrix to develop marketing strategy