Ansoff’s product/market matrix provides a useful summation of prod-
uct and market strategies. Organisations can consider market penetration,
market development, product development or diversification as key mar-
keting initiatives. Much product/market strategy focuses on gaining mar-
ket share. PIMS analysis has proved highly influential and has linked
market share to profitability. While this relationship is often true – don’t
blindly chase market share as it is not universally applicable.
Additionally, an awareness of the PLC is important. The strategist
needs to understand the PLC shape and how the marketing mix varies in
the introduction, growth, maturity and decline phases.
Organisations need to be watchful and avoid the pitfall of strategic
wear-out and strategies need to address hostile and declining markets.
■ References
Aaker, D., Strategic Market Management, 4th edn, Wiley, New York, 1995.
Ansoff, I., Strategies for diversification, Harvard Business Review, 25 (5), 1975,
pp. 113–125,
Davidson, H., Even More Offensive Marketing, Penguin, London, 1997, p. 285.
Hooley, G., Saunders, J. and Piercy, N., Marketing Strategy and Competitive Position,
2nd edn, Prentice Hall, Hemel Hempstead, 1998.
Kotler, P., Armsrong, G., Saunders, J. and Wong, V., Principles of Marketing, 2nd
edn, Prentice Hall, New Jersey, 1998.
Kotler, P., Principles of Marketing, 2nd European edn, Prentice Hall, 1999, p. 531.
Kotler, P., Principles of Marketing, 2nd European edn, Prentice Hall, 1999, p. 528.
Porter, M., Competitive Strategy: Techniques for Analysing Industries and Competitors,
Free Press, Macmillan Publishing Co., New York, 1980, p. 39.
Porter, M., Competitive Advantage, The Free Press, Macmillan Publishing, 1985, p. 6.
■ Further reading
Aaker, D., Strategic Market Management, 4th edn, Chapter 14, Wiley, New York,
1995.
Wilson, R. and Gilligan, C., Strategic Marketing Management, 2nd edn, Chapters 9,
10, Butterworth-Heinnemann, Oxford, 1998.
Strategy formulation 175