Unit 3.8

Question 1

Igor Ansoff

Answer 1

• Theory relating to how a company looking for growth can choose their marketing strategy

Question 2

Ansoff’s Matrix

Answer 2

Can either be…
- Existing product in existing market = low risk
- Existing product in New market = medium risk
- New product in existing market = medium risk
- New product in new market = high risk

Question 3

Porters strategic matrix

Answer 3

• Suggested Low cost or differentiation strategies were the only strategies which would give the business a competitive advantage

Question 4

Cost leadership

Answer 4

• Useful in highly competitive markets - however consumers may frequently switch suppliers
• E.g. Poundland

Question 5

Differentiation

Answer 5

• Useful in highly technological markets which are rapidly changing
• e.g. Game

Question 6

Cost focus

Answer 6

• Useful when a business wants to offer low prices to a small market segment
• Niche marketing but at a very low cost

Question 7

Differentiation focus

Answer 7

• Useful when the business wants to offer products and services to a small market segment
• e.g. Knit stop

Question 8

Bowman’s strategic clock

Answer 8

• Shows how a business can position its products based on dimensions = price and perceived value

Question 9

Strategic positioning

Answer 9

Process of choosing strategies that the business will use to differentiate themselves from competitors