Expand Your Business by Following Market Development Strategies

Do you want to be a market leader? Are you thinking of strategies that would bring you profits? Do you want to make your product successful one?

Then you need to follow some great strategies that could make your product successful. You can only win the competition if you follow the strategies that are best suitable for your business.

Among many types of strategies, market development is also one to run the business successfully. As an effective leader you need to develop this strategy.

This strategy is about entering into a new market with the same product which means the expansion of your target markets.

These new markets may already be a targeted market of your competitors or may not have been targeted at all. In both cases, the decision should be taken wisely and the best market development strategy should be applied.

Market Development Strategy

There are certain goals and objectives of the company that varies from one organization to another. Whatever goal you choose, the strategies should be chosen accordingly.

For those companies whose main goal is to increase sale and maximize the profit, (this is the goal of most of the companies nowadays as they thrive to be a leader) market development strategy is the best to choose.

But before going for market development strategy there are certain things that you should consider.

  • Do you think the market to be potential and profit generating?
  • Do you have the right amount of resources for this process?
  • Is your business flexible to accept any change?
  • Can you maintain your current position in the new market as well?

These are some basic questions that need to be kept in mind before going for this type of strategies. But if you are confident enough that you can do it then the next question arises which is of real importance.

Would you opt for expanding the market by existing product or by developing a new product?

In case you want to sell the same product to a new market, then the point to be considered is that you are already selling your product in the market and how can you expect that your same product would attract more customers?

But this is the solution to your worries. You can definitely achieve this by following process:

Increase usage of your product by existing customers

market development strategy

Although, it seems to be a difficult task but you can achieve it by;

  • Increasing the size of the product thus resulting into increase in level of purchase
  • Attracting new customers for the product
  • Use the positive response of current users to attract new ones
  • Benefits for extra usage of the product could be offered for the purpose as well.

Attract the customers of your competitors

market development strategy

The market these days is very price sensitive because of the increased economic crises.

The majority of the people go for the purchase of lower price product with good quality. The best way to get your competitor’s customers is by providing them with benefits that your competitor is not offering.

You can do it by product differentiation strategies which are yet another type of strategies for attracting more customers. By making your product different from that of your competitors, could be in quality, price or advertising etc.

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Attracting those who do not buy your product

market development strategy

Another market development strategy is by attracting those who are not buying your product at all.

They may be those who do not buy the products of the categories in which your product falls.

The best way to do so is by offering them a free sample of your product or by influencing your current users to get these non-users attracted.

Geographical Expansion

market development strategy

This may be the first thing that you would think about when go for applying market development strategy.

In fact, it is not a bad idea at all!! But mostly this idea is best for those organizations whose main aim is to expand their business in other areas as this strategy would require a separate physical facility.

Many big companies have already followed this strategy. You can expand your market either in other area, nationally or it could be internationally in case you are a big name.

These were some tips for your current product market expansion. Now, what if you are thinking of expanding market by introducing a new product in your current product line or by developing a totally new product?
There are also certain techniques that could work for this issue.

Addition of new attributes to your current product

market development strategy

Many marketers follow this strategy to not only improve their product but also to attract large customers for it. You can do this by

  • Modifying your product in terms of color, shape, odor etc
  • Magnifying your product by adding extra value or increasing the prices
  • Reducing by introducing the sample version or by making it shorter than the previous version or may be lighter.
  • Substituting the existing ingredients with new one
  • Combining one or more features

• Make different sizes

market development strategy

The other best way to modify your existing product line is, by developing the different sizes or different models for the same product that would then make your product suitable for the new users.

Introduce a completely new product

Although it is a risky step to take but once successful it could earn huge profits for your company and could attract more customers. You can introduce a new product that could be relevant to your existing one.

market development strategy

The main risk of following these development strategy is that the company may not be able to fully understand the need of the customer and could end up in not only financial loss but could also lose its good name in the market.

So if you want to go with this strategy make sure you have done all the required market research and have gathered all the resources. If successful, these strategies could prove to be real profitable for your organization.

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