The Product Market Growth Model Essays

773 Words 4 Pages
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 such as a new DVD movie or device. Organisations that pride on innovation are more likely to develop new products for existing clients. Finally, the high risk nature of targeting new products and services for new clients highlights the difficulties associated with diversification, (Icaobucci, 2014, p. 213). STRATEGY 2: BCG MODEL
The BCG model incorporates undertaking market share analysis regarding the growth and strength of particular brands, products or services. The strongest performing brands or products are colloquially termed stars. Cash cow brands or products typically demonstrate strong market share performance within a non-growth sector. Brands and products with the least amount of market share are aptly termed dogs.…

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