Market development is a growth strategy that identifies and develops new market segments for current products. It involves marketing existing products in new markets.
A development strategy targets non-buying
customers
In sales, commerce, and economics, a customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product, or an idea, obtained from a seller, vendor, or supplier via a financial transaction or an e ...
in currently targeted
segments. It also targets new customers in new segments. A market development strategy entails expanding the potential market through new users or new uses. New users can be defined as new geographic segments, new demographic segments, new institutional segments or new psychographic segments. Another way is to expand sales through new uses for the product.
For discontinuous innovations, which are those that impose a change of behavior, new learning, or a new process on the buyer or end user, a focused market development strategy is needed to bridge the gap between the early market and the mainstream.
A
marketing manager
Marketing management is the strategic organizational discipline that focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of marketing resources and a ...
is involved in many considerations before implementing a market development strategy, like whether the market is profitable, whether it will require the introduction of new or modified
products
Product may refer to:
Business
* Product (business), an item that can be offered to a market to satisfy the desire or need of a customer.
* Product (project management), a deliverable or set of deliverables that contribute to a business solution
...
and whether the customer and
marketing channel
A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products get to the end-user, the consumer; and is also ...
s are well enough researched and understood.
See also
*
Market penetration
Market penetration refers to the successful selling of a good or service in a specific market. It involves using tactics that increase the growth of an existing product in an existing market. It is measured by the amount of sales volume of an ...
*
Product development
New product development (NPD) or product development in business and engineering covers the complete process of launching a new product to the market. Product development also includes the renewal of an existing product and introducing a product ...
*
Product diversification
References
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Marketing strategy