The product market expansion grid i

The product market expansion grid is a framework for detecting intensive growth strategies for companies looking for new opportunities to increase profits and sales. The product market expansion grid was developed by Ian Ansoff.

This marketing strategy is structured on four steps. The first step in implementing the product market expansion grid is to check whether a company can gain more share on the market by using their current products on the current markets. This first step is called Market Penetration. The second step involves company checking for new markets for their current products. This step is called Market Development. Another step involves finding ways to expand the market share by introducing new company products on the current market. This step is called Product Development. If the previous strategies were not feasible the last step involves developing new products for new market. This last step, called Diversification, requires a lot of efforts and budget allocation.

Market Penetration Strategy:

When a company has a product is in the current market, its share on the market can still grow. To increase current product’s market share can be used three major approaches: