Question

If a company has $1 million to spend on a new strategy and is considering market development versus product development, what determining factors would be most important to consider? Explain your reasoning.

Answer 1

Product Development Strategy:

A product development strategy is based on developing new product or modifying existing product so they appear new,and offering those products to current or new markets.This strategy typically come about when there is little or no opprotunity for new growth in a company's cuurent market.It take into consideration the company's capabilities as well as their competitors.

Market Development Strategy:

It is a growth strategy that identifies and develops new markets for current products.A market development strategy targets non-buying customers in currently targeted segments.A market development strategy entails expanding the potential market through new users or new uses

Factors to be consider are as follows:

i)Promotion

Depending on the type of store you are,you might choose to utilise different promotion methods.It expand your customer exposure and make your company and product names recognisable in the market.

ii)Product Failure

When you are first to the market,You are first to the risk exposure.First to market also means the first to be exposed the issue uncovered when a product gets put into real world applications for the first time.Your competition will come with solution to the problems that your product created and dilute the benefit of being first to the market.

iii)External Resources

The external resources are much difficult to control and defected supplies can put your entire product and market development plans behind schedule and over budget.