Suggest a new Definition Show Proposed definitions will be considered for inclusion in the Economictimes.com Definition: Market development is a strategic step taken by a company to develop the existing market rather than looking for a new market. The company looks for new buyers to pitch the product to a different segment of consumers in an effort to increase sales. Description: Market Development is a 2-step process to tap the untapped market. It begins with market research wherein a company does a segmentation analysis and short ists market segments which are worth pursuing. It is an attempt to use the existing product or service to attract new customers. The goal is to expand the reach or tap into a different segment or unexplored market. A segment is defined as the small sub-group of a larger population. For example, the marketing team of the company can divide the market based on geography, demographics as well as income levels etc. Once the company decides which segment to choose, the next step of market development involves creating a promotional strategy to enter into the market. For that, companies may have to take the support of both audio and visual media to push the product deeper into the market. Another aspect is the pricing of the product. If there are competitors in the market, you may have to price the product accordingly or come out with a product which belongs to the same segment but differs in features, quality etc. to command higher pricing. To counter competition, the marketing team could look at the penetration pricing where you can aggressively price the product below competitors product to gain market share. The major challenge faced by firms, which want to indulge in market development, is that it is a costly affair. It requires huge capital investment to keep the project going. If the investment in the new segment doesn’t pay off as desired, then the whole exercise turns out to be worthless.
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What is the strategy of increasing market share for present products in existing markets?As a strategy, market penetration is used when the business seeks to increase sales growth of its existing products or services to its existing markets in order to gain a higher market share.
What strategy is used to offer a new product to a new market?Diversification – The concept of entering a new market with altogether new products.
What strategies is the most effective to increase sales?Be Present With Clients And Prospects. ... . Look At Product-To-Market Fit. ... . Have A Unique Value Proposition. ... . Have Consistent Marketing Strategies. ... . Increase Cart Value And Purchase Frequency. ... . Focus On Existing Customers. ... . Focus On Why Customers Buy. ... . Upsell An Additional Service.. What is market development strategy?Market Development Strategy is a growth strategy put in place by companies or organizations to introduce their product or solution to target audiences they have not yet reached or are not yet currently serving.
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