In my research of different marketing theories I studied several concepts. The application of each theory depends on where a person is at in their career or personal business. As an entrepreneur and market maker I related most to a combination of two theories; Ansoff Matrix and McCarthy's four P's. The Ansoff matrix is a quadrant chart of (1). market penetration, (2). market development, (3). product development, and (4). diversification (Watts, Cope, & Hulme., 1998). The four P's deals mostly with the tangible products or abstract services as the center of focus; price, product, promotion, and placement (Clowe & Baack, 2010).
By working close with several vendors and owning a small business I use product innovation. According to Watts, et. al., 1989, whenever introducing a new product to a new market a company must diversify. Diversification with a familiar product or service is less of a risk than with one the business has no experience with (Watts, Cope, & Hulme., 1998). Risk is considered as uncertainty that can be addressed by using the 4 P's to research the market (Clowe & Baack, 2010). Entering new markets requires addressing several external forces including charging against business defending market share, & influencing new consumers cognitive selection process.
In my management career I used diversification to feature new products for companies to show the market how they can apply the product or service to their current or future need. This required focusing on the features pros and compare the product against the competitions relevant cons. The goal of such a presentation is to display a products added value that will make the consumers life better upon selection. The diversification process is a convincing stage for new products in new markets (Watts, Cope, & Hulme., 1998).
Reference
Osri, J. K. (2013). Entrepreneurial Marketing: Activating the Four P's of Marketing strategy in entrepreneurship. The Entrepreneurial Executive, 18(6). Retrieved from https://proquest.com
Watts, G., Cope, J., & Hulme, M. (1998). Ansoff's Matrix, pain and gain: Growth strategies and adaptive learning among small food producers. International Journal of Entrepreneurial Behavior & Research, 4(2), 101-111. doi:10.1108/13552559810224567
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