How to determine your strategic marketing goals?
The Ansoff matrix can help marketing manager with how to grow. In essence there are four strategies to achieve growth:
- Market penetration: In this case the companies tries to increase its market share within its existing markets. This can be done by selling more to the same customer (either the same product or more expensive products) or acquiring new (but the same kind of) customers in the same market. Typical tactics to realize this are by decreasing pricing, increasing (price) promotion, expanding the distribution network and buying a competitor. Typical SMART goals are: revenue per customer and number of (new) customers.
- Market development: In this case, the company expands into new markets either geographically or reaching a completely new target group. This can be done by using its own resources but also by using new channels like franchisers and distributors. Typical SMART goals include sales increase in the new region or among the new customer segment.
- Product development: To achieve growth, a company can also select to develop new products. The level to which this can be done can differ.
- New product line: From Apple iPod to iPhone to iPad and Watch
- Product extension: iPhone6S, iPhone6S, iPhone6Plus, iPhone6, iPhoneSE
- Product upgrade: From iPhone 5 to iPhone 6.
- The way products can be developed can differ:
- Investing in one’s own R&D
- Branding a third-party product as its own product
- Jointly developing a product line
- Diversification: Diversification strategies are usually the most risky as a company tries to combine two strategies that in itself are already challenging into one: introducing new products in new markets.