The DifferenceMarket development is any strategy designed to sell to an identifiable group of customers that is beyond your current reach. This can be customers with unique needs and preferences. Alternatively, it can be customers in a geographical location or who shop using a particular channel. Market development may involve promotion, distribution, pricing or branding activities that don't require a completely new product.Product development is the most extensive approach to market development whereby you develop a product for a new target market.
ExampleA chain of organic juice bars finds that most of their customers are health conscious customers older than 30. They seek to develop the 20-30 market segment with promotions that imply that juice is good for a hangover. In other words, they seek to develop a market with promotion alone.The organic juice bar is successful increasing sales to 20-somethings and moves on to develop the teenager segment of the market. They find that current products are viewed as overpriced and unattractive to teenagers. As such, the firm decides to develop a completely new line of products for this market. They launch a line of cheap snacks that are sold as combos with juice.
|Market Development vs Product Development|
Reaching a new target market for products and services.
Developing and launching a new product or service.