Hello, I’m Jim Glover, That Branding Guy, for Once a Day Marketing™. Today is SmartMonday and we aregoing to look at the word &ddquo;new” as it relates to introduction of new products and expansion into new markets.
I’m sure you’ve heard that Apple has introduced yet another new product into the marketplace. New products can create buzz among consumers, keep a brand top of mind and boost sales. It’s important for you to understand how to analyze your products and markets so you can determine when to do the same for your business.
Some of the elements you have to consider before creating new products or expanding your market include how to manage existing products, when to develop new products, when to sell current products in existing markets and when to seek new markets. We’re going to take a look at H. Igor Ansoff’s growth vector matrix model to assist you in determining which approach to take.
There are four growth vector components to look at. Market penetration, market development, product development and diversification.
Market penetration is all about increasing market share with your existing products. Market development means finding new markets for your existing products. Product development encompasses creating new products for your existing market and finally, diversification is developing new products and new markets.
As I mentioned earlier, new products are the lifeblood of an organization. How do we define new? Does modifying an existing product make it new? How about introducing an existing product to a new market? Is it developing an entirely new market or product? New includes any or all of these scenarios and it’s up to you to determine which direction is the best for your company to go in.
No matter which course you chose, it’s important to look at the impact to your bottom line and the risks and benefits associated with introducing something new into your product line or reaching into new markets.
That concludes Smart Monday. Join us tomorrow for Strategic Tuesday. To discuss an online or onsite service engagement and enhance the marketing and branding for your organization, contact James Glover: (505) 501-1330 or email@example.com. I’m Jim Glover, That Branding Guy, for Once a Day Marketing™ and we’ll see you next time.
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