Page 6: Product development
Ansoff's matrix is a useful tool for examining a company's product range. This compares the alternatives of developing new products and new markets. There are four main options:
- Market penetration: selling more of the same types of product to the same types of people.
- Product development: building on existing relationships with consumers and on a creative ability to develop new products suited to consumer wants.
- Market development: developing an existing product to cater for emerging markets.
- Diversification: developing new products for new markets.