What is a market development strategy?
Definition Of A Market Development Strategy
A market development plan is a growth strategy businesses, or organizations use to expose their product or solution to target consumers that have not previously been reached or served by the firm or organization. Consider the case below: Your software firm has a new product line currently available. If you want to create a market growth strategy, you must first figure out who the new product would benefit the most and how to reach them the most effectively – this is your market development strategy.
There are various elements to consider while designing a new market growth strategy. Several factors are also there to consider when determining whether or not your company is ready to develop a new market growth plan for your product. These are some of them:
● What specific target audience (market) are you overlooking at the moment?
● Do you have the time and resources to build a market development strategy and the skills to assess its effectiveness?
● Will the effort you put in to reach this new market be worth the financial commitment made by your firm or organization? (What is the return on investment?)
Examples Of Popular Market Development Techniques
One way to reach a broader audience with your product or service is to expand into new geographic regions. For instance, if your organization is now only targeting clients in the United States, look into what it would take to grow your audience globally. Alternatively, if you are currently just serving tech firms in New York City, examine whether it would be beneficial to broaden your reach to include tech firms in San Francisco.
● You can upsell existing clients – If all or a portion of your current customer base would benefit from your new product offering, try using your current relationship with clients to introduce the product.
● In conjunction with (or in addition to) an upselling strategy for existing customers or clients, you might devise a plan for acquiring non-users of your product. Offering free trials, cold outreach, promotion, and other methods are just a few options available.
● Is there anyone else who makes a product similar to yours? How will you persuade their clients to migrate to your business? Perhaps you can lower your prices, offer incentives or discounts, advertise to lookalike groups, or give your customers a better user experience.
Implementation Of Market Development Strategies
Market Development Strategy can vary broadly depending on the type of business we consider. Hence it would be best if you employed a market development strategy to keep the circumstances of your business in mind.
New Geography: If the product/business is small, the next step would be to enter into new geographies. In case you plan to do so, the following should be the point to keep in mind:
● Is the market in the saturation phase?
● Can any competitive advantage be gained in the prospective market?
● Are your resources sufficient to back this endeavor?
Market with new demography: Depending on the product, you can decide if targeting particular demography (men, women, etc.) makes sense.
Upselling and Cross-Selling: Some new use cases could arise for your product. It can be leveraged to be used to upsell your products. You should conduct thorough surveys to find out how people are currently using the product and what can be the potential new selling points.
Attract non-buyers: Offering new rates, speeding up marketing and promotions, and providing free trials could help you attract non-buyers in your present market. Such market development techniques assist you in persuading non-buyers to try your product in the current market.
Customers of your competitors are a good place to start: There will always be competitors, regardless of the category in which you conduct your firm. You could, however, entice your competitors’ customers by differentiating your products in terms of features, price range, or customer service. Customers would switch brands as a result of all of these approaches.