Presentation Tips:  Opportunity Identification Chart / Ansoffs Matrix

The Opportunity Identification Chart (Ansoffs Matrix) is a great tool to propose next year’s growth strategies to your boss.  This chart could help you to better show and categorize all the available opportunities in one PowerPoint slide.  This article will first explain the basics of this chart and conclude with an example slide.

According to the textbook Basic Marketing A Global-Managerial Approach written by Stanley J. Shapiro, William D. Perreault and E. Jerome McCarthy, there are four kinds of opportunities for marketers to sell more of their products:

	Present Products	New Products
Present Markets	1. Market Penetration	2. Product Development
New Markets	3. Market development	4. Diversification

Source: Page 45, Basic Marketing A Global-Managerial Approach written by Stanley J. Shapiro, William D. Perreault and E. Jerome McCarthy

1. Market Penetration: Increase the sales of your present products in the present markets by revising your marketing mix.  This is the number one task enterprises should focus on before launching other strategies.

2. Product Development: introduce more products to your existing customer base.  The result would be increased revenue per customer.  This strategy works extremely well if you have developed long lasting relationship with your customers.

3. Market Development: Introduce your existing products to a new market.  This might be a new geographic area and customer group.  This strategy works extremely well if you have a strong product that fits the new market’s needs.

4. Diversification: Launch a new product in a new market.  This is a high risk activity.  You will not have the ability to leverage off your existing resources and customer base.

Here is an example of how an Opportunity Identification Chart looks like for a US based company in a PowerPoint slide:

Market Penetration	Product Development
Do a promotion during Christmas to stimulate immediate sales Do a direct mailing campaign to evoke existing customers’ needs	Create a new product XYZ and cross-sell to the existing customer group
Market development	Diversification
Introduce our existing product ABC in Thailand. Start a joint venture with a local company in China to sell ABC.	Create a new product XYA and sell it in Africa.

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