Ansoff’s Product-Market Expansion Grid

page 45, Figure 2.4

One of my favorite tools for marketing managers is the Market Expansion Grid.  This is a great tool to use with the marketing department and groups of stakeholders.  The grid is easy to understand and guides identification of growth strategies.  Schedule time with knowledgeable people and ask them to brainstorm ideas that can be placed in one of the four strategy areas.  Identify Market-penetration, Market-development, Product-development and Diversification strategies with minimal judgments.  Worthyand practical ideas with respect the mission statement and core competencies will emerge.      


Current Products

New Products

  Current                 Customers 

Market-penetration Strategy 

Product-development Strategy

  New Customers    

Market-development Strategy 

Diversification Strategy


5 responses to “Ansoff’s Product-Market Expansion Grid

  1. Tonja Rogers-Williams

    I can see the value of the market expansion grid & the SWOT analysis. The charts seem to be a tool to help brainstorm.

  2. The Market Expansion Grid is a valuable and effective way for a company to develop its market or product strategy for business growth.

  3. I saw an interesting article online from the Wall Street Journal discussing product placement (product appearances in movies and TV shows) no longer being just for big companies. It mentioned that a New York designer, Eileen Shields, had her shoes worn in the “Sex and the City” movie and it created a buzz on blogs and in fashion magazines which increased her sales substantially. It went as far as the Middle East, where she is now working with new customer, Saks Dubai. Eileen might look closer at the Market Expansion Grid to see where else she can take her current product because she probably never dreamed such expansion possible.

  4. Antionette Campbell

    A market grid is very important in my opinion. I can see SWOT having a mixture into it as well. These two mixtures can help a company grow and develop a great strategy plan to market the next idea or product to there new/current customers. Also helping them with demographics and other issues that may occur.

  5. I can see how this can be helpful to a company that wants to make a new product line. Even though I have seen this before I actually just now understand exactly how this grid works. Its also good for comparing the new product to the old products and making a prediction of how the new line will do compared to the old ones then you can take that and transform it.

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