Question

Discuss the four strategic options that are open to an organization in relation to its products or services in Ansoff's matrix.

b. Explain the costumer’s decision making process in their buying behavior

Answer 1

a. The four strategies that are open to an organization concerning its product or services in the Ansoff’s matrix are

Market penetration

It is the strategy in which the firm uses its product in an existing market or the other words we can say that the firm is aiming for an increase in its market share with its market penetration strategy. This strategy can be executed in no way such as increasing promotions, decreasing the prices for attracting customers, etc.

Market development

In the market development strategy, a firm enters in the new market with its existing products and expanding into new markets means expanding in customer segments and geographic regions, etc. this strategy is most successful when firm owns the proprietary technology or when the behavior of the consumer doesn’t deviate far from that of the consumer in existing markets.

Product development

In the strategy of the product development in which new product is catering to the existing market and this type of move involves extensive development and research of the product range of the company. This strategy is employed when the firms have a strong understanding of the current market and can provide solutions that are innovative and meet the need of the existing market.

Diversification

In the diversification strategy, the firm enters the new market with the new product and this strategy is the riskiest one because both the product and the market development are required. This strategy may offer the potential for increasing revenues, as it is opening the new revenue system entirely for the company. Diversification can be related or unrelated.

b. Buying behavior is an approach that marketers use to identify the decision-making process of potential consumers.

The first step entails recognizing a need, where the consumer feels the need to acquire something that will fill a gap or offer them satisfaction.

The second phase entails information search, where the consumer does a thorough search of all information concerning prices and quality of the products that can fill the need that was identified.

Third, the consumer will embark on an evaluation process of the identified alternatives in an attempt to come up with the best option that will satisfy their need.

The consumer will now decide to purchase the good after the evaluation process, where they will have identified the best option possible.

Finally, there is the post-purchase behavior phase, where the consumer evaluates the purchased commodity in terms of whether the actual good met the expectations, which will determine whether the consumer will consume more of the good and be an ambassador or decide to stop consuming the good