Market Development-Growth Matrix

The Market Development-Growth Matrix is a strategic tool used by businesses to identify and analyze growth opportunities. It helps in evaluating the potential for expanding into new markets or developing new products for existing markets, thereby aiding in strategic decision-making.

At a very high level, the Market Development-Growth Matrix is used in the context of business, marketing, strategy.

Market Development-Growth Matrix quadrant descriptions, including examples
Want to try this template?
Other Templates

What is the Market Development-Growth Matrix?

A visual explanation is shown in the image above. The Market Development-Growth Matrix can be described as a matrix with the following quadrants:

  1. Market Penetration: Increasing sales of existing products in existing markets, e.g., launching a new marketing campaign to boost sales.
  2. Market Development: Expanding into new markets with existing products, e.g., entering a new geographical region.
  3. Product Development: Developing new products for existing markets, e.g., introducing a new product line to meet customer needs.
  4. Diversification: Entering new markets with new products, e.g., launching a new product in a foreign market.

What is the purpose of the Market Development-Growth Matrix?

The Market Development-Growth Matrix, also known as the Ansoff Matrix, is a strategic planning tool that provides a framework for businesses to identify and evaluate growth opportunities. The matrix is divided into four quadrants, each representing a different growth strategy: Market Penetration, Market Development, Product Development, and Diversification.

Market Penetration: This strategy focuses on increasing sales of existing products in existing markets. It involves tactics such as increasing market share, improving product quality, or implementing more aggressive marketing campaigns.

Market Development: This strategy involves expanding into new markets with existing products. It may include targeting different geographical areas, new customer segments, or different distribution channels.

Product Development: This strategy focuses on developing new products to serve existing markets. It involves innovation, research and development, and understanding customer needs to create products that fulfill those needs.

Diversification: This strategy involves entering new markets with new products. It is the most risky strategy as it requires both market and product development. However, it can also offer the highest potential for growth if executed successfully.

Businesses use the Market Development-Growth Matrix to assess the risks and rewards associated with each growth strategy and to make informed decisions about where to allocate resources. It is particularly useful for companies looking to expand their market presence or diversify their product offerings.

Want to try this template?

What templates are related to Market Development-Growth Matrix?

The following templates can also be categorized as business, marketing, strategy and are therefore related to Market Development-Growth Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

How can I use Market Development-Growth Matrix in Priority Matrix?

You can get Market Development-Growth Matrix in your Priority Matrix in just a moment:

  1. Click to sign in or create an account in the system
  2. Start adding your items to the matrix
  3. If you prefer it, download Priority Matrix and take your data with you

Learn more about Market Development-Growth Matrix, and get free access to lots of other templates, at Once you are comfortable with the document, you can easily export to Excel, if you prefer to work that way.

If you have any questions and you can't find the answer in our knowledge base, don't hesitate to contact us for help.