Hello, I’m Jim Glover, That Branding Guy, for Once a Day Marketing™. Today is Smart Monday and we are going to look at the word “new” as it relates to introduction of new products and expansion into new markets.
I’m sure
you’ve heard that Apple has introduced yet another new product into the
marketplace. New products can create
buzz among consumers, keep a brand top of mind and boost sales. It’s important for you to understand how to
analyze your products and markets so you can determine when to do the same for
your business.
Some of the
elements you have to consider before creating new products or expanding your
market include how to manage existing products, when to develop new products, when
to sell current products in existing markets and when to seek new markets. We’re going to take a look at H. Igor Ansoff’s
growth vector matrix model to assist you in determining which approach to take.
There are
four growth vector components to look at.
Market penetration, market development, product development and
diversification.
Market
penetration is all about increasing market share with your existing products. Market development means finding new markets
for your existing products. Product
development encompasses creating new products for your existing market and finally,
diversification is developing new products and new markets.
As I
mentioned earlier, new products are the lifeblood of an organization. How do we define new? Does modifying an existing product to make it
new? How about introducing an existing product
to a new market? Is it developing an
entirely new market or product? New
includes any or all of these scenarios and it’s up to you to determine which
direction is the best for your company to go in.
No matter
which course you chose, it’s important to look at the impact to your bottom
line and the risks and benefits associated with introducing something new into
your product line or reaching into new markets.
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Marketing™. All rights reserved.
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