MARKET DEVELOPMENT

PRESENTED BY: MITALI GOELPRESENTED TO: MS. LIPI

A market development strategy involves selling present

products or services in new markets. Managers take

actions like targeting promotions, opening sales offices

and creating alliances to operationalize a market

development strategy.

MARKET DEVELOPMENT STRATEGY

The ANSOFF’S Growth matrix is a tool that helps

businesses decide their product and market growth

strategy. It is useful for Companies management looking

for the new opportunities to increase their sales and

profits

ANSOFF’S product/market growth matrix suggests that a

business’ attempts to grow depend on whether it markets

new or existing products in new or existing markets.

ANSOFF’S PRODUCT/MARKET MATRIX

ANSOFF’S MATRIX- THE OUTCOME GROWTH STRATEGIES

MARKET PENETRATION PRODUCT DEVELOPMENT

MARKET DEVELOPMENT DIVERSIFICATION

EXISTING PRODUCT NEW PRODUCT

New

Exis

ting

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RK

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Marketing efforts of the company to offer their existing products in the current

markets is called market penetration strategy. The best way to do is to attract

competitors customer and looking for potential customer for the existing

products.

Example: Recognizing that software as a service can be a potent market

penetration tool,

Dell is assembling a services portfolio that now includes e-mail disaster

recovery, spam/virus filtering and archiving via its Message One acquisition.

MARKET PENETRATION

Maintain or increase the market share of current products.

Secure dominance of growth markets.

Restructure a mature market by driving out competitors.

Increase usage by existing customers.

MARKET PENETRATION OBJECTIVES

Market development is the name given to a growth strategy where

the business seeks to sell its existing products into new markets for

the new customer to increase company performance by increasing

sales and profits.

Example: Pakistan State Oil (PSO) developing new market by

exporting oil to Afghanistan.

Chinese products developed new market for their product worldwide.

MARKET DEVELOPMENT

• New geographical markets; for example exporting the product to a new

country.

Companies can develop market on geographical such as city, country, region,

state etc and demographical such as age, sex, gender, class etc.

• New product dimensions or packaging.

• New distribution channels.

• Different pricing policies to attract different customers or create new market

segments.

APPROACHES TO MARKET DEVELOPMENT

Product development is the name given to a growth strategy where a business

aims to introduce new products into existing markets.

Developing or modifying new products and offering to the existing market.

Example: Google developed a new browser Chrome for the existing Internet

user.

McDonalds is always within the fast-food industry, but frequently markets new

burgers.

PRODUCT DEVELOPMENT

A business markets new products in new markets.

This is an inherently more risk strategy because the business is moving into markets

in which it has little or no experience.

For a business to adopt a diversification strategy, therefore, it must have a clear idea

about what it expects to gain from the strategy and an honest assessment of the risks.

Adopted by the company if the current market is saturated due to which revenues and

profits are lower.

DIVERSIFICATION:

Virgin Media moved from music producing to travels and

mobile phones

Walt Disney moved from producing animated movies to

theme parks and vacation properties

Canon diversified from a camera-making company into

producing whole new range of office equipment.

Examples

THANK YOU