Since marketing strategy, by denition (Oxenfeldt, 1958), involves choosing target segments and a marketing mix, many of the following approaches to corporate strategy also emphasize one or the other of these fundamental marketing strategy concepts. Next we examine the genesis of approaches to corporate strategy that have come to dominate the marketing textbook literature, then reorienting them to t marketing strategy by breaking down and modifying the concepts where necessary, and nally modernizing the terminology and rebuilding the concepts into a framework for marketing strategy. Ansoffs growth strategies The most well-known, and least often attributed, aspect of Igor Ansoffs Growth Strategies in the marketing literature is the term product-market. The product-market Marketing strategy 41 JHRM 4,1 42 Figure 4. Growth strategies concept results from Ansoff juxtaposing new and existing products with new and existing markets in a two by two matrix, as shown in Figure 4.

Ansoffs (1957, p. 114) original HBR paper establishing the two by two product-market matrix was preceded by an HBR article three months earlier with almost identical concepts by Johnson and Jones (1957, p. 52). These authors developed a three by three matrix based on technological (product) newness and market newness ranging from existing products to new products. One of Ansoffs cells used the identical term diversication found in Johnson and Jones; while two of the cells used nearly identical terminology: product extension versus Ansoffs product development, and market extension versus Ansoffs market development. Although not cited (citations of earlier work were rare in business periodicals prior to the 1950s), Ansoff (1957) would certainly have been familiar with the earlier article and his work clearly renes and extends some of Johnson and Joness (1957) ideas. Useful as the model may be for corporate strategy, there are several problems with Ansoffs (1957, 1965) product-market matr

For marketing, there are two problematic and two useful cells in Ansoffs matrix. In the case of an existing product and an existing market, Ansoff suggests a penetration strategy. However, there is no meaningful information provided about how to actually use this strategy to penetrate the market. For example, Ansoff (1957, p. 114) says: Market penetration is an effort to increase company sales without departing from an original product-market strategy.

In a similar vein Ansoff (1965, pp. 109-110) states: Marketing penetration denotes a growth direction through the increase of market share for the present product-market. This begs the question: what should the strategist do to generate sales or market share growth without departing from an original product-market strategy? Sales and market share are goals, but what are the specics of a penetration strategy to attain them? In answer to the question, Ansoff is silent, as are most subsequent marketing writers. Aside from the strategys lack of specicity, there is a glaring inconsistency that has apparently escaped notice in the marketing literature.