Ansoff Matrix - wikipedia Ansoff Matrix The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. It is named after Russian American Igor Ansoff, who came up with the concept. Diagram showing the Ansoff Matrix Contents 1 Growth strategies 1.1 Market penetration 1.2 Market development 1.3 Product development 1.4 Diversification 2 See also 3 References Growth strategies Ansoff, in his 1957 paper, provided a definition for product - market strategy as `` a joint statement of a product line and the corresponding set of missions which the products are designed to fulfill ''. He describes four growth alternatives : Market penetration In market penetration strategy, the organization tries to grow using its existing offerings ( products and services ) in existing markets. In other words, it tries to increase its market share in current market scenario. This involves increasing market share within existing market segments. This can be achieved by selling more products or services to established customers or by finding new customers within existing markets. Here, the company seeks increased sales for its present products in its present markets through more aggressive promotion and distribution. This can be accomplished by : ( i ) Price decrease ; ( ii ) Increase in promotion and distribution support ; ( iii ) Acquisition of a rival in the same market ; ( iv ) Modest product refinements Market development In market development strategy, a firm tries to expand into new markets ( geographies, countries etc. ) using its existing offerings. This can be accomplished by ( i ) Different customer segments ( ii ) Industrial buyers for a good that was previously sold only to the households ; ( iii ) New areas or regions about of the country ( iv ) Foreign markets. This strategy is more likely to be successful where : - ( i ) The firm has a unique product technology it can leverage in the new market ; ( ii ) It benefits from economies of scale if it increases output ; ( iii ) The new market is not too different from the one it has experience of ; ( iv ) The buyers in the market are intrinsically profitable. Product development In product development strategy, a company tries to create new products and services targeted at its existing markets to achieve growth. This involves extending the product range available to the firm 's existing markets. These products may be obtained by : ( i ) Investment in research and development of additional products ; ( ii ) Acquisition of rights to produce someone else 's product ; ( iii ) Buying in the product and `` branding '' it ; ( iv ) Joint development with ownership of another company who need access to the firm 's distribution channels or brands. Diversification In diversification an organization tries to grow its market share by introducing new offerings in new markets. It is the most risky strategy because both product and market development is required. ( i ) Related Diversification - Here there is relationship and, therefore, potential synergy, between the firms in existing business and the new product / market space. ( a ) Concentric diversification, and ( b ) Vertical integration. ( ii ) Unrelated Diversification : This is otherwise termed conglomerate growth because the resulting corporation is a conglomerate, i.e. a collection of businesses without any relationship to one another. A strategy for company growth through starting up or acquiring businesses outside the company 's current products and markets. See also Business model Business triage First - mover advantage Marketing Market segmentation Strategic planning References Jump up ^ `` Quick MBA : Ansoff Matrix ''. quickmba.com. Retrieved 27 June 2014. Jump up ^ `` MBASkool : Ansoff Matrix ''. mbaskool.com. Retrieved 27 June 2014. Jump up ^ Ansoff, I. : Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5, Sep - Oct 1957, pp. 113 - 124 Strategic planning tools Ansoff Matrix Balanced scorecard Competitor analysis Growth -- share matrix Mind map PEST analysis Porter 's five forces analysis Scenario planning SWOT analysis Retrieved from `` https://en.wikipedia.org/w/index.php?title=Ansoff_Matrix&oldid=819695816 '' Categories : Strategic management Business planning Business terms Hidden categories : Articles containing video clips Talk Contents About Wikipedia Azərbaycanca Български Català Deutsch Español Français हिन्दी Italiano Nederlands 日本 語 Polski Português Русский Svenska Українська Tiếng Việt Edit links This page was last edited on 10 January 2018, at 20 : 05. About Wikipedia

Question: creating new products for new markets is called
Answer: diversification