Market Development - Revision history

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'''Market Development''' is a growth [[Strategy|strategy]] that identifies and develops new [[Market Segmentation|market segments]] for current [[Product|products]]. A market development strategy targets non-buying [[Customer|customers]] in currently targeted segments. It also targets new customers in new segments. A market development strategy entails expanding the potential [[Market|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. In high tech, where discontinuous [[Innovation|innovation]] is the norm, a successful market development strategy requires crossing the chasm between the early market and the mainstream.<ref>Definition - What Does Market Development Mean? [https://en.wikipedia.org/wiki/Market_development Wikipedia]</ref>

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−	'''Market Development''' is a growth [[Strategy\|strategy]] that identifies and develops new [[Market Segmentation\|market segments]] for current [[Product\|products]]. A market development strategy targets non-buying [[Customer\|customers]] in currently targeted segments. It also targets new customers in new segments. A market development strategy entails expanding the potential [[Market\|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. In high tech, where discontinuous [[Innovation\|innovation]] is the norm, a successful market development strategy requires crossing the chasm between the early market and the mainstream.<ref>Definition - What Does Market Development Mean? [https://en.wikipedia.org/wiki/Market_development Wikipedia]</ref> A marketing development strategy is important because it helps a business grow and reach new customers in a planned, structured way. Expanding your audience creates the potential for more leads, more sales, and more revenue, but in-depth research is essential to make sure there’s value in targeting new customers.	+	'''Market Development''' is a growth [[Strategy\|strategy]] that identifies and develops new [[Market Segmentation\|market segments]] for current [[Product\|products]]. A market development strategy targets non-buying [[Customer\|customers]] in currently targeted segments. It also targets new customers in new segments. A market development strategy entails expanding the potential [[Market\|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. In high tech, where discontinuous [[Innovation\|innovation]] is the norm, a successful market development strategy requires crossing the chasm between the early market and the mainstream.<ref>Definition - What Does Market Development Mean? [https://en.wikipedia.org/wiki/Market_development Wikipedia]</ref> A marketing development strategy is important because it helps a business grow and reach new customers in a planned, structured way. Expanding your audience creates the potential for more leads, more sales, and more revenue, but in-depth research is essential to make sure there’s value in targeting new customers. Market Development is the expansion of the [[Total Addressable Market (TAM)\|total addressable market (TAM)]] and and how much market share can be claimed.

	Market Development is a 2-step process to tap the untapped market. It begins with [[Market Research\|market research]] wherein a company does a segmentation analysis and shortlists market segments which are worth pursuing. It is an attempt to use the existing [[Product\|product]] or [[Service\|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.		Market Development is a 2-step process to tap the untapped market. It begins with [[Market Research\|market research]] wherein a company does a segmentation analysis and shortlists market segments which are worth pursuing. It is an attempt to use the existing [[Product\|product]] or [[Service\|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.

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-'''Market Development''' is a growth [[Strategy|strategy]] that identifies and develops new [[Market Segmentation|market segments]] for current [[Product|products]]. A market development strategy targets non-buying [[Customer|customers]] in currently targeted segments. It also targets new customers in new segments. A market development strategy entails expanding the potential [[Market|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. In high tech, where discontinuous [[Innovation|innovation]] is the norm, a successful market development strategy requires crossing the chasm between the early market and the mainstream.<ref>Definition - What Does Market Development Mean? [https://en.wikipedia.org/wiki/Market_development Wikipedia]</ref>
+'''Market Development''' is a growth [[Strategy|strategy]] that identifies and develops new [[Market Segmentation|market segments]] for current [[Product|products]]. A market development strategy targets non-buying [[Customer|customers]] in currently targeted segments. It also targets new customers in new segments. A market development strategy entails expanding the potential [[Market|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. In high tech, where discontinuous [[Innovation|innovation]] is the norm, a successful market development strategy requires crossing the chasm between the early market and the mainstream.<ref>Definition - What Does Market Development Mean? [https://en.wikipedia.org/wiki/Market_development Wikipedia]</ref> A marketing development strategy is important because it helps a business grow and reach new customers in a planned, structured way. Expanding your audience creates the potential for more leads, more sales, and more revenue, but in-depth research is essential to make sure there’s value in targeting new customers.
 Market Development is a 2-step process to tap the untapped market. It begins with [[Market Research|market research]] wherein a company does a segmentation analysis and shortlists market segments which are worth pursuing. It is an attempt to use the existing [[Product|product]] or [[Service|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.<ref>How Market Development Works [https://economictimes.indiatimes.com/definition/market-development Economic Times]</ref>

← Older revision		Revision as of 12:37, 30 April 2021
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	'''Market Development''' is a growth [[Strategy\|strategy]] that identifies and develops new [[Market Segmentation\|market segments]] for current [[Product\|products]]. A market development strategy targets non-buying [[Customer\|customers]] in currently targeted segments. It also targets new customers in new segments. A market development strategy entails expanding the potential [[Market\|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. In high tech, where discontinuous [[Innovation\|innovation]] is the norm, a successful market development strategy requires crossing the chasm between the early market and the mainstream.<ref>Definition - What Does Market Development Mean? [https://en.wikipedia.org/wiki/Market_development Wikipedia]</ref>		'''Market Development''' is a growth [[Strategy\|strategy]] that identifies and develops new [[Market Segmentation\|market segments]] for current [[Product\|products]]. A market development strategy targets non-buying [[Customer\|customers]] in currently targeted segments. It also targets new customers in new segments. A market development strategy entails expanding the potential [[Market\|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. In high tech, where discontinuous [[Innovation\|innovation]] is the norm, a successful market development strategy requires crossing the chasm between the early market and the mainstream.<ref>Definition - What Does Market Development Mean? [https://en.wikipedia.org/wiki/Market_development Wikipedia]</ref>
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		+	Market Development is a 2-step process to tap the untapped market. It begins with [[Market Research\|market research]] wherein a company does a segmentation analysis and shortlists market segments which are worth pursuing. It is an attempt to use the existing [[Product\|product]] or [[Service\|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.<ref>How Market Development Works [https://economictimes.indiatimes.com/definition/market-development Economic Times]</ref>