Podcast
Questions and Answers
According to Ansoff's Matrix, which strategy is considered the riskiest for a business?
According to Ansoff's Matrix, which strategy is considered the riskiest for a business?
- Market Penetration
- Product Development
- Market Development
- Diversification (correct)
Which of the following best describes 'Market Penetration' as defined by Ansoff's Matrix?
Which of the following best describes 'Market Penetration' as defined by Ansoff's Matrix?
- Introducing new products to new markets.
- Developing new products for existing markets.
- Marketing existing products in new markets.
- Adapting products for markets in which the business already operates. (correct)
A company selling coffee in the US decides to open stores in China. They sell the same coffee blends but relabel the packaging in Mandarin. Which strategy does this exemplify, according to Ansoff's Matrix?
A company selling coffee in the US decides to open stores in China. They sell the same coffee blends but relabel the packaging in Mandarin. Which strategy does this exemplify, according to Ansoff's Matrix?
- Product Development
- Diversification
- Market Penetration
- Market Development (correct)
A clothing retailer decides to launch a new line of sustainable clothing in response to consumer demand in its existing markets. Which strategy from Ansoff's Matrix does this represent?
A clothing retailer decides to launch a new line of sustainable clothing in response to consumer demand in its existing markets. Which strategy from Ansoff's Matrix does this represent?
The Mumbai-based Tata Group's involvement in steel, car making, and financial services is an example of which growth strategy?
The Mumbai-based Tata Group's involvement in steel, car making, and financial services is an example of which growth strategy?
Why might extending into international markets increase risk, according to the text?
Why might extending into international markets increase risk, according to the text?
Domino's adapting their products to meet local tastes in India, while maintaining their customer service model, is an example of:
Domino's adapting their products to meet local tastes in India, while maintaining their customer service model, is an example of:
Which of the following is NOT a key consideration for a successful 'Market Development' strategy?
Which of the following is NOT a key consideration for a successful 'Market Development' strategy?
A company that manufactures smartphones decides to start producing electric cars. According to Ansoff's matrix, this move would be classified as:
A company that manufactures smartphones decides to start producing electric cars. According to Ansoff's matrix, this move would be classified as:
According to Ansoff's Matrix, what is the primary focus when considering global marketing strategies?
According to Ansoff's Matrix, what is the primary focus when considering global marketing strategies?
Flashcards
Market Penetration
Market Penetration
Adapting products for markets in which the business already operates.
Market Development
Market Development
Marketing existing products in new markets, which may require modifications.
Product Development
Product Development
Promoting new or modified products in existing markets.
Diversification
Diversification
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Ansoff's Matrix
Ansoff's Matrix
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Glocalisation
Glocalisation
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Study Notes
- Ansoff's Matrix is a strategic tool, previously discussed, that helps businesses achieve growth and inform marketing strategy decisions.
- The Ansoff's Matrix model can be applied to a glocalisation strategy.
- Multinational brands like Starbucks, Ford, and McDonald's, utilize the Ansoff Matrix.
Ansoff's Matrix Strategies
- Ansoff's Matrix presents four strategies for business adoption
- Risk increases the further a firm extends from its existing products and consumers.
- Extending into international markets can make the expertise of local conditions and tastes less secure.
- When considering global marketing, the focus is on businesses introducing new or existing products into new markets, considering national and cultural differences.
Market Penetration
- This is the adaptation of products for markets in which a business already operates.
- McDonald's operates in Japan and launched the Teriyaki McBurger which is market penetration strategy that helps them enter markets.
Market Development
- This involves marketing existing products in new markets.
- It relies heavily on understanding local habits, tastes and needs which may require modifications to suit the new market, such as in language or labeling.
- Domino's adapted its products in many countries, such as India, to meet local tastes while keeping its model of customer service and prompt delivery.
- Refining an existing product to fit into a new, overseas market is an example of both market development strategy and glocalisation.
Product Development
- This strategy is where a business promotes new or modified products in existing markets.
- Product development is appropriate for businesses marketing products with short product life cycles, like clothes and fashion accessories.
Diversification
- Diversification occurs when new products are developed for entirely new markets.
- Diversification is the riskiest strategy because a business is venturing into markets where it has little or no experience.
- The Mumbai-based Tata Group, with interests in steel, car making, chemicals, beverages, perfume, financial services, hotels, and consultancy services, exemplifies a highly diversified business.
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