In past articles, I have found a link between the knowledge needed to run a successful business and the knowledge needed to run a 
successful PPC campaign – articles such as ‘Applying the Boston Matrix to PPC‘ demonstrate this. The simple fact is that a PPC campaign must be part of a business since it is a form of advertising and in businesses there is always a marketing sector. For this reason, this article is going to look into another business concept which many businesses use to help identify their products. From doing this to your product, you will then be able to adapt your campaign to fit its needs.
The Ansoff matrix is a way of examining the different strategies businesses take when looking at what the product offers and what market the business is competing in. For this reason, there are four sectors to the Ansoff matrix:
- Market Penetration – This is where the business focuses on selling existing products into existing markets to secure dominance of a market.
- Market Development – This strategy is where the business seeks to sell its existing products into new markets to help enter into new geographical locations and new distribution channels.
- Product Development – This is where the business looks to introduce new products into existing markets.
- Diversification – The highest risk strategy, diversification involves a business marketing new products into new markets.
Whatever business you are part of and whatever product you are selling, it can be categorised into one of the above strategies. This means that the Ansoff matrix is an effective way to identify what you want to do with your product helping you mould a PPC campaign around it.
If your product is in Market Penetration, you should look to have a long term strategy for your product since you are not introducing anything new to the product/market. This is where SEO along with PPC could provide synergy results.
If your product is in Market Development, you will need the backing of a PPC campaign to boost sales for the new markets you are entering into. In most cases, this means selling your product abroad. This makes it perfect for a PPC campaign since, with PPC, you can geographically target your campaign.
If your product is in Product Development, you will need the support of a PPC campaign since you are introducing new products into the same market (people will not know what the new product is without effective advertising). The budget for this campaign does not have to be lots since people will be fairly familiar with your brand and business from the previous products in the same market. Nevertheless, the new product still needs to have introductory advertising.
If your product is in Diversification, you need an all-out PPC campaign that intensively advertisers your new product. The reason for this because you are completely new to the market with a new product. In order to get people to find out about your product and your business, you will need to set aside a large budget for a short term PPC campaign.
