MARKET DEVELOPMENT

PI
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.
ANSOFF’S PRODUCT/MARKET MATRIX

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 MATRIX-
THE OUTCOME GROWTH STRATEGIES

EXISTING PRODUCT NEW PRODUCT

MARKET PENETRATION PRODUCT DEVELOPMENT

Existing
MARKET
MARKET

MARKET DEVELOPMENT DIVERSIFICATION

New
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