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Market Development Vs. Product Development

Posted on the 14 November 2016 by Socialmediaevie @socialmediaevie
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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.

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