How to choose a Growth Strategy (The Ansoff Matrix)
Listen from the T4S Podcast (click here to visit):
When I did my MBA, we covered the Ansoff Matrix, and it is a key element in understanding how you will grow your company or your business. And the great thing about it, is that it is a simple concept that can be applied easily.
I include it in this series of posts as it gives structure to your thinking. Coupled with Eugene Schwartz’s 5 stages of market awareness and sophistication it gives you a tremendous tool-set to construction your growth strategy.
To model different growth strategies, Igot Ansoff created a simple matrix – as shown with this article – that allows a company or business to focus its strategy to acquire new customers.
By considering ways to expand via existing and new products, existing markets and new markets, there are 4 combinations.
Those four growth strategies are market penetration, market development, product development and diversification.
It gives you the answer to “what should I be focussing on now?”
Please refer to the image of this blog post to see the Ansoff Matrix I refer to.
In summary, the four strategies can be set as:
Market Penetration – you want to achieve growth with existing products in your current market segments, aiming to increase your market share.
Market Development – growth will be achieved by targeting your existing products to new market segments.
Product Development – you will develop new products targeted to your existing market segments.
Diversification – you will grow by diversifying into new businesses by developing new products for new markets.
Selecting your growth strategy
Market penetration is the least risky. You will be using existing resources and capabilities. Market share can be expanded if competitors reach limits. The problem is that when the market is saturated, there are few opportunities to expand further. At this point another strategy must be adopted.
Market development is the pursuit of additional market segments or demographic/geographic regions. If your core competencies are related more to your product (rather than the market segment) then this is a particularly good strategy. However, the risk is larger than the previous strategy because of the unknowns held within a new market.
Product development is more attuned to you if your core competencies are related to your customers (market) than your product. This is because the product can developed to satisfy the customer’s desires. Especially their unsatisfied desires. Again, it comes with more risk than just market penetration.
Diversification is, as you would expect, the most risky. But can reap the greatest rewards. It has, it is worth mentioning, been referred to by many as the “suicide cell”! However, if the rate of return outweighs the level of risk, then this is a strategy that must be considered. Because you have the chance to establish a position in a new market (refer back to Schwartz’s levels of market sophistication here). By being the first, you will get the greatest rewards by far.
Whilst this topic could have – and indeed has – entire books devoted to it, I hope you see that you must have a strategy in mind.
It is no good planning just for today, but instead always be considering where you are heading. How does what you are considering today fit in with your long term strategy? Does it make sense?
It is all too easy to waste time, money and effort on acting too late, or heading in the wrong direction.
So consider your market(s), consider your product(s) but always have in mind your overall growth strategy.
Loads more Blog articles!
Reflect changes to your Library content immediately on your pages!
Posted January 3, 2022
It's rare you don't have a button on your page, maybe you have more than one. So how about some top tips for buttons? What should they look like? Where should you put them? How many should you have? What should be on them?
Posted July 8, 2020
If you are using a custom domain name with T4S.site then you must read this, as you have a deadline of 27th June.
Posted June 13, 2020
If someone was talking about you, in a room that you are not in, what would you want them to say about you? This is your brand. Let's discuss how you can stand out from the crowd.
Posted March 16, 2020
The temptation, with your incredible offering, your ultimate product or service, is to dive into something like Facebook Ads, and spend, spend, spend. But don't! Instead craft, test and scale your message. Your promise. Your offer.
Posted March 9, 2020
I want to touch on the 3 types of traffic that you will get to your website or online sales funnel. So what types of traffic exist, and how can you bring that traffic to your online funnel? Paid traffic, referred traffic and Earned (free) traffic.
Posted February 29, 2020
NEW! Upgrade to the page editor! (and a new page element) Three new things to tell you about: 1) Quickly insert new page elements above or below. 2) New organised way to choose new page elements. 3) New page element! The Audio Player.
Posted February 27, 2020
The Ansoff Matrix. When I did my MBA, we covered the Ansoff Matrix, and it is a key element in understanding how you will grow your company or your business. And the great thing about it, is that it is a simple concept that can be applied easily. To model different growth strategies, Igot Ansoff created a simple matrix - as shown with this article - that allows a company or business to focus its strategy to acquire new customers.
Posted February 26, 2020
By knowing where your company stands, it will allow you to construct a marketing angle to efficiently and effectively capture the market you want. Here then, are the 5 Stages of Market Sophistication discussed by Eugene Schwartz.
Posted February 25, 2020
Heads up! This is probably the foundation of your business - and I’m not exaggerating.
Posted February 21, 2020
You will, I am sure, already have dealt with all “types” of people - your customers, or potential customers. To be able to create a strategy and system for selling, we need to be able to plan accordingly. It is not feasible to plan for every single customer, so to help us, we can categorise them and create a strategy for each.
Posted February 20, 2020
Far more important than understanding your product (assume I mean product or service), is understanding your prospects, your potential customer. And even more important than that, is understanding why people buy.
Posted February 19, 2020
Fancy highlighting some text in bright yellow, pink, green, blue or silver? Like those highlighter pens? And how about buttons that change color when you move your mouse over them? This is how.
Posted December 6, 2019
Get FREE access to the T4S Bootcamp and physical copies of the "Traffic for Sales" books!
Posted November 30, 2019
Give visitors content for free, as a teaser, to get them hooked, and then when they hit a locked page you present a sales page for them to pay to carry on.
Posted November 12, 2019
You can now cut, copy and paste! One or more elements at a time, cut or copy and paste to same page, or different page in your funnel ... even to another page in another funnel!
Posted November 7, 2019
Refreshed for your enjoyment! Need to know, or need to refresh, how to set up payments for single or recurring? And what the options mean? Then put the kettle on, and take a look.
Posted October 24, 2019
And, I've updated the tutorial page with a handy video, that takes you through one step at a time. It's as simple as 1, 2, 3.
Posted October 1, 2019
A brand new page element for you - progress bars! Those nice graphical representations of progress.
Posted September 23, 2019
What to add a shadow to an image, or, well, any element? Yep - you can.
Posted September 23, 2019
If you're selling anything from a book to consultancy hours, you can now let people buy more than just one.
Posted September 17, 2019
All you have to do, is log in daily to T4S and watch your T4S Marketplace discount grow! Instantly, anything on the T4S Marketplace will have a discount applied. Right up to 99% off!!!
Posted September 16, 2019
With the new Stripe checkout, comes the first extra feature - product image on checkout.
Posted September 13, 2019
T4S.Site is now using the new version of Stripe. Right now, it's operating "as it was" (other than their new checkout page), but there are some potential benefits that we can now add. In addition to the added security for your users.
Posted September 12, 2019
On a per page, per user basis, users can make notes and save them for when they return. Perfect for courses and membership areas. Use on individual pages, certain pages or perhaps one page for notes.
Posted August 4, 2019
A new page element - Search - adds a search to your funnel. Perfect for courses and membership areas.
Posted July 30, 2019
You may remember that I mentioned Stripe is changing. Indeed, you may be getting emails yourself if you are using Stripe. So here's an update on research and testing so far...
Posted July 9, 2019
You can now use CTRL + ALT + V (or CTRL + OPTION + V if on a Mac) to quickly preview a page, along with the other keyboard shortcuts. Also, duplicate page drops the new page below the old one. Much better.
Posted June 27, 2019
Get your colors and brand all spot on with this brilliant way to pick a color from any image on your page!
Posted June 21, 2019
If using Stripe, you'll need your test and live, publishable and secret keys. This is how to find them.
Posted June 21, 2019
Maybe you want to change a page URL but already shared it? Or a temporary promotion? Send one page to another!
Posted June 21, 2019
Set the space between lines of text to what you want. Also referred to as line height or leading, you can now spread out your text!
Posted June 21, 2019
Forums are brilliant for engagement, return traffic, support, community spirit - the list is endless with this new Forums page element!
Posted June 21, 2019
How an accountant used the power of focus in his marketing to succeed by NOT selling to the world.
Posted May 22, 2019
Create unlimited quizzes, with questions and answers. Include results for your members and generate certificates their name for downloading.
Posted March 19, 2019
Latest changes for March 2019. New features that you should know and might want to know.
Posted March 8, 2019
Gosh! There were rather a lot of new shiny things to play with, that came with the February 2019 update.
Posted February 19, 2019
Don't be afraid of webinar funnels - they are used because they are incredibly successful. Find out how to create your awesome webinar!
Posted December 9, 2018
I've been told it's worth everything from £99 to £699 so I'm going to do a special launch price at the lowest! JUST £99! That's about £1.62 per video. The value, know-how and actions you'll get from each must be worth £1.62?!
Posted October 18, 2018
A fast track guide to your first experience with T4S Traffic for Sales after logging in for the first time.
Posted October 8, 2018
It’s critical when selling, to know who your perfect customer is. Who you should be selling to, and how to find them – and then how to make it clear that they should buy from you (and why). The worst answer you can give to “Who do you sell to?” is “Anyone”.
Posted October 7, 2018
It's about time your thought about how those affiliate marketers are successfully making a passive income that grows every month!
Posted October 3, 2018
So what are funnels? Click funnels. Sales funnels. Online funnels. Marketing funnels. Lots of names, but funnels is what it's all about. So "Funnels Basics" - what are these funnels all about?
Posted September 26, 2018
"When I told them about my online course they laughed. But when I started to make money!" Let's face it... You know something that others would pay you for. Learn how, with a full course template with payments, pages - the lot!
Posted September 5, 2018
Being funny, making friends, licking your elbow... all hard to do. But the good news, particularly if your funny bone popped out at birth, is that there are some key principles - a formula if you will - that you can follow to “be funny”.
Posted August 26, 2018
106 of the most Tested and Successful Headlines ever written by the great John Caples - for your inspirationBlog Articles, by Simon Goodchild
“On the average, five times as many people read the headline as read the body copy. When you have written your headline, you have spent eighty cents out of your dollar.” - David Ogilvy
Posted August 24, 2018
Have you heard the one about the copywriter who didn't use stories? No, I didn't think so.... This is why!
Posted August 22, 2018
Before we start on this topic, let me clear up one thing. The word “hacking” nowadays brings up pictures of annoying teenagers illegally breaking into computers, using some magic technique (which, by the way, are 99% made up or unrealistic!). But this is NOT what it means!
Posted August 21, 2018
Getting a post to go viral is tough. It’s worth saying that before getting into the theory of making content go viral. So if you want a post to go viral, before anything else you need to know what triggers “virality” in the first place.
Posted July 28, 2018
2.2 BILLION PEOPLE!!!! Surely, your target audience is likely to be in there somewhere? Follow these steps to make Facebook your success story.
Posted July 27, 2018
Unless you are very fortunate, what you offer is not unique. Your potential customers have choices. So use your brand to stand out!
Posted July 20, 2018
The temptation, with your incredible offering, your ultimate product or service, is to dive into something like Facebook Ads and spend, spend, spend. This is how you should do it.
Posted July 9, 2018
A key component of selling is understanding how aware your target audience is of your offer, so you can tailor your message accordingly. These are the 5 stages of awareness.
Posted July 6, 2018
When selling, you will convert less if you go straight for your core offer. This is the biggest mistake you can make. This is how to do it right.
Posted July 3, 2018
Get a free copy of my new book "Sales Funnel Secrets" before it is released!
Posted June 20, 2018
You hate them, I hate them, so why do they exist? Because this is how they have been proven to work (sorry).
Posted June 12, 2018
Free eBooks are brilliant lead magnets. This is how they get you your ultimate sale!
Posted June 5, 2018
What do I mean? Well, when you are selling, you typically ask for payment for something small, of tremendous value. A no brainer. A lead magnet. A $7 something. And then...
Posted May 17, 2018
Support your copy or call to action, counter objections, use social proof strategically, support the argument you’re making and the story you’re telling and humanise your marketing with social proof.
Posted May 16, 2018
The good news is that Google does index embedded content with iframes. But what are they? And why should you care? Plus one thing you must do, to do it right.
Posted May 14, 2018
They are a core tool for conversion experts, so why should they be used with caution? Well first, we need to understand what sort of heat maps exist, and which are good (and bad) to rely on.
Posted May 13, 2018
Covers all the expected "sections" of a long sales letter page. Use and adapt to your own niche. Remember, it's about the visitor, not you (apart from the credentials section).
Posted May 12, 2018
I thought I'd explain how urgency with countdown timers increases conversions rates, based on proven market testing. With some amazing results.
Posted May 12, 2018
It may sound too good to be true, but through affiliate marketing you can make money while you sleep. So let's consider it in more detail.
Posted May 10, 2018
You don't just create a set of web pages and call it a day, thinking job done. Your entire sales funnel is a series of steps, using your web pages (your online sales funnel if you like) as the foundation. And this is why.
Posted May 9, 2018