The Ansoff product market growth model involves strategic identification of increasing sales for a specific product or service via four distinct methods. The first method involves the application of market penetration via a current product in the existing marketplace. Put simply, the same product or service is being used without targeting new customers. There is the distinct possibility that using the same product or service might result in loss of growth or sales, (Icaobucci, 2014, p. 212).
Option two involves the identification of new target groups via existing products and services via market development, (Icaobucci, 2014, p. 212). The third option involves the development of new products or services for existing clients via product development …show more content…
Protection is paramount to prevent loss of market share in a highly competitive environment. This can be achieved via patenting or trademark of a brand or product. Cash cow brands necessitate additional attention to prevent from being pursued by rival based companies or organisations. Similarly, question marks require additional research or identification of new target consumers or technologies to enhance the viability of the brand or product into either a cash cow or star. Lastly, profit, revenue and sales losses can be minimised by the reduction in the amount of dog based brands or products, (Icaobucci, 2014, p. …show more content…
Identification of target products or services is the initial stage. Research is undertaken to assess market attractiveness regarding the aforementioned brands or products in the second stage. The third stage involves analysis of business position which inevitably leads to the penultimate stage: mensuration of market attractiveness and business position of the brand or product. The final stage involves designating ratings for business position and market attractiveness, (Marketing Teacher, 2016).
The absence of empirical evidence identifying correlations between business position and market attractiveness, subjective nature of analysis and research and arduous process of data collation highlight the difficulties of utilising the GE matrix model in marketing management, (Marketing Teacher, 2016). STRATEGY 4: PORTER 'S MODEL
The Porter model encompasses three strategies to capture market share. One initial strategy to capture additional market share involves cost leadership. Here, efficiency is paramount in the production of products and services inevitably resulting in a price reduction for customers in contrast to rival firms, (Icaobucci, 2014, p. 214). Capturing market share can be achieved via differentiation of products and services. Differentiation might be in the form of effective marketing of a highly tangible or intangible product or service; alternatively, the product or service is unique in nature in comparison
Option two involves the identification of new target groups via existing products and services via market development, (Icaobucci, 2014, p. 212). The third option involves the development of new products or services for existing clients via product development …show more content…
Protection is paramount to prevent loss of market share in a highly competitive environment. This can be achieved via patenting or trademark of a brand or product. Cash cow brands necessitate additional attention to prevent from being pursued by rival based companies or organisations. Similarly, question marks require additional research or identification of new target consumers or technologies to enhance the viability of the brand or product into either a cash cow or star. Lastly, profit, revenue and sales losses can be minimised by the reduction in the amount of dog based brands or products, (Icaobucci, 2014, p. …show more content…
Identification of target products or services is the initial stage. Research is undertaken to assess market attractiveness regarding the aforementioned brands or products in the second stage. The third stage involves analysis of business position which inevitably leads to the penultimate stage: mensuration of market attractiveness and business position of the brand or product. The final stage involves designating ratings for business position and market attractiveness, (Marketing Teacher, 2016).
The absence of empirical evidence identifying correlations between business position and market attractiveness, subjective nature of analysis and research and arduous process of data collation highlight the difficulties of utilising the GE matrix model in marketing management, (Marketing Teacher, 2016). STRATEGY 4: PORTER 'S MODEL
The Porter model encompasses three strategies to capture market share. One initial strategy to capture additional market share involves cost leadership. Here, efficiency is paramount in the production of products and services inevitably resulting in a price reduction for customers in contrast to rival firms, (Icaobucci, 2014, p. 214). Capturing market share can be achieved via differentiation of products and services. Differentiation might be in the form of effective marketing of a highly tangible or intangible product or service; alternatively, the product or service is unique in nature in comparison