ITPEC FE Morning April 2019 Question 67
ITPEC FE Morning April 2019 — Question 67 of 80
Ansoff Growth Matrix — existing product + existing market = Market penetration
The Ansoff Matrix maps growth strategies along two axes: product (existing vs. new) and market (existing vs. new).
| Existing Product | New Product | |
|---|---|---|
| Existing Market | Market penetration | Product development |
| New Market | Market development | Diversification |
The correct answer is c) Market penetration — selling more of the same product to the same market (e.g., promotions, loyalty programs, increased advertising).
Why not the others:
- a) Diversification — new product in a new market (highest risk strategy)
- b) Market development — existing product brought to a new market (e.g., expanding to another country)
- d) Product development — new product offered to the existing market
Key rule: Remember the matrix as a 2×2 grid. "Penetration" = digging deeper into what you already have (both axes are existing). "Diversification" is the opposite corner (both axes are new).
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