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INTRODUCTION
Anshoff’s Product Market Expansion Grid
Model
Existing Market + Existing
Product
=
Market Penetration
This growth strategy uses current
products and current markets with
the goal to increase market share.
This targets non-buying customers in
currently targeted segments. It also
targets new customers in new
segments in order to expand the
potential market.
New Market + Existing Product
=
Market Development
Existing Market + New Product
=
Product Development
It is a process that has two parallel
paths: one involves the idea
generation, product design, and detail
engineering; the other involves
market research and
marketing analysis.
Diversification seeks to increase
profitability through greater sales
volume obtained from new products
and new markets.
New Market + New Product
=
Diversification
Anshoff's Product market expansion grid model

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Anshoff's Product market expansion grid model

  • 3. Existing Market + Existing Product = Market Penetration This growth strategy uses current products and current markets with the goal to increase market share. This targets non-buying customers in currently targeted segments. It also targets new customers in new segments in order to expand the potential market. New Market + Existing Product = Market Development
  • 4. Existing Market + New Product = Product Development It is a process that has two parallel paths: one involves the idea generation, product design, and detail engineering; the other involves market research and marketing analysis. Diversification seeks to increase profitability through greater sales volume obtained from new products and new markets. New Market + New Product = Diversification