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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
MA
RK
ET M
AR
KET
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