A market development strategy involves introducing present products or services into new geographic areas, whereas a product development strategy seeks increased sales by improving or modifying present products or services.
Determining factors for market development include the following:
- When new channels of distribution are available that are reliable, inexpensive, and of good quality.
- When an organization is very successful at what it does.
- When new untapped or unsaturated markets exist.
- When an organization has the needed capital and human resources to manage expanded operations.
- When an organization has excess production capacity.
- When an organization’s basic industry is rapidly becoming global in scope.
Determining factors for product development include:
- When an organization has successful products that are in the maturity stage.
- When an organization competes in an industry that is characterized by rapid technological developments.
- When major competitors offer better-quality products at comparable prices.
- When an organization competes in a high-growth industry.
- When an organization has especially strong research and development capabilities.
