Ansoff Matrix - Apple
Introduction
The Ansoff matrix includes market penetration, product development, market
development and diversification. Businesses use the Ansoff matrix techniques
to sell their products, business also use branding to increase recognition and
relationship marketing to build customer relations. ‘’This model is essential for
strategic marketing planning where it can be applied to look at opportunities to
grow revenue for a business through developing new products and services or
"tapping into" new markets. This focus on growth means that it's one of the
most widely used marketing models. It is used to evaluate opportunities for
companies to increase their sales through showing alternative combinations for
new markets (i.e. customer segments and geographical locations) against
products and services offering four strategies as shown.’’
Market penetration - Market penetration involves selling more products of the
same variety to the existing market. It helps businesses to grow and increase
their sales and make more profit, it is the least risky strategy because the
business knows the customers and they know the product. Apple uses the
market penetration strategy to sell more of their existing products to the
existing market, such as the iPhone, iPad to their current target market. Apple
does this to grow and gain a larger market share; it helps Apple increase their
revenue. Apple does this by promoting their existing Apple products, such as
by using TV advertising to encourage the target market to purchase the Apple
products, they also use social media such as Facebook to promote their
products and gain attention.
Apple also use this strategy by releasing a new updated version of the iPhone
every 12 months, the new iPhone has slight changes and improvements which
encourages the existing iPhone users to purchase the updated version,
because they want to test out and use the latest features. For example, Apple
realised iPhone 8 plus after they realised the iPhone 8, to attract the current
users to purchase the new product. Apple also offers free customer service for
up to 2 years for the Apple owners. Moreover, Apple offers free delivery on all
products from orders that are placed on their online website. Another way
Apple uses market penetration is by using direct marketing to gain attention
from the customers that have previously purchased products from Apple.
New product development - Product development means selling new
products to the existing market; this strategy is slightly less risky because the
Introduction
The Ansoff matrix includes market penetration, product development, market
development and diversification. Businesses use the Ansoff matrix techniques
to sell their products, business also use branding to increase recognition and
relationship marketing to build customer relations. ‘’This model is essential for
strategic marketing planning where it can be applied to look at opportunities to
grow revenue for a business through developing new products and services or
"tapping into" new markets. This focus on growth means that it's one of the
most widely used marketing models. It is used to evaluate opportunities for
companies to increase their sales through showing alternative combinations for
new markets (i.e. customer segments and geographical locations) against
products and services offering four strategies as shown.’’
Market penetration - Market penetration involves selling more products of the
same variety to the existing market. It helps businesses to grow and increase
their sales and make more profit, it is the least risky strategy because the
business knows the customers and they know the product. Apple uses the
market penetration strategy to sell more of their existing products to the
existing market, such as the iPhone, iPad to their current target market. Apple
does this to grow and gain a larger market share; it helps Apple increase their
revenue. Apple does this by promoting their existing Apple products, such as
by using TV advertising to encourage the target market to purchase the Apple
products, they also use social media such as Facebook to promote their
products and gain attention.
Apple also use this strategy by releasing a new updated version of the iPhone
every 12 months, the new iPhone has slight changes and improvements which
encourages the existing iPhone users to purchase the updated version,
because they want to test out and use the latest features. For example, Apple
realised iPhone 8 plus after they realised the iPhone 8, to attract the current
users to purchase the new product. Apple also offers free customer service for
up to 2 years for the Apple owners. Moreover, Apple offers free delivery on all
products from orders that are placed on their online website. Another way
Apple uses market penetration is by using direct marketing to gain attention
from the customers that have previously purchased products from Apple.
New product development - Product development means selling new
products to the existing market; this strategy is slightly less risky because the
