MARKET DEVELOPMENT

PRESENTED TO: MS. LIPI

PRESENTED BY: MITALI GOEL

MARKET DEVELOPMENT STRATEGY

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.

ANSOFFS PRODUCT/MARKET MATRIX

The ANSOFFS 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

ANSOFFS product/market growth matrix suggests that a business attempts to grow depend on whether

it markets new or existing products in new or

ANSOFFS MATRIXTHE OUTCOME GROWTH STRATEGIES

EXISTING PRODUCT
New Existing MARKET MARKET

NEW PRODUCT

MARKET PENETRATION

PRODUCT DEVELOPMENT

MARKET DEVELOPMENT

DIVERSIFICATION

MARKET PENETRATION
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 OBJECTIVES

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 DEVELOPMENT
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.

APPROACHES TO 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.

PRODUCT 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.

DIVERSIFICATION:
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.

Examples 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.

THANK YOU