Market Development Strategies

Market development strategies refer to any structured set of strategies or plans that a business employs to boost its market share internationally in any given market. A market development strategy is typically developed to improve the total market size of a company by leveraging on the experience of a known market research company. This means that all steps of developing a market strategy must be integrated and carefully studied and analyzed in order to yield tangible results. In fact, some companies go as far as hiring a third party company to conduct market studies in order to gather enough data to formulate an effective market strategy.

There are three types of market development strategies. These include market entry strategy, market exit strategy and market penetration strategy. A market entry strategy is used when a business looks to get any existing customer or client to buy its product or service. This could be done by introducing new products or services, or by improving upon current products and services. It aims to make existing customers return to the company for more services or buy more from it. To formulate an effective market strategy visit gawdo

On the other hand, a market entry strategy would not be successful if the introduction of the strategy does not bring about at least a proportional increase in the company's revenue. The most common of these strategies is the design and development of a good and effective advertising campaign. Advertising is a crucial element for bringing in new customers and for maintaining customer loyalty. Gone were the days of placing ads on neglected media, such as newspapers. Today, getting your company listed on the biggest billboard and print advertisements in town do not guarantee you success. Advertising can only bring in new clients and growth; without the necessary exposure, your business will eventually go belly up.

A market development strategy designed to improve current operations would be pointless if the methods being used to improve these procedures are also being used to reduce costs. It is imperative that new procedures and methods are cost-effective. This means that the tools and resources being used to carry out the work have to be of low cost. If these resources are too expensive, your work cannot be completed, and your customers will go elsewhere. It is important that the tools and resources being used are affordable, so that work can be completed on time and within the allocated budget.

There are three important market development strategies: expansion, growth and replacement. Extending your current work scope is vital to the success of any venture. This expansion can take the form of hiring new staff, buying new property, opening a new branch line, or even opening a new premises. Growth is essential for surviving the cut-throat competition in today's market and sustaining your company's market position. It involves expanding your geographical area, diversifying your product offering, merging with other companies, and/or exiting an existing industry.

Replacement is a very important market development strategy. When planning to replace existing employees, it is crucial to consider all aspects of their job description. This includes skill sets, equipment, communication style, and other employment related factors. This replaces an employee with the same skill set who may be better equipped to carry out your company's duties.

Growth is considered a necessary market development strategy when expanding your market share. The most common method of growing market shares is by offering new products, enhancing existing products, attracting more customers to your service or product line, or by expanding your sales force. These methods can result in revenue gains if the customer base grows to include a large percentage of the overall population. Other strategies such as marketing promotions, franchising opportunities, and recruitment may also be implementing to ensure your company has access to a large client base.

Marketing promotions is the third market development strategy. Promotions help you attract new markets by presenting new products or services. The promotion of a new product requires research, development, advertising, and a large supply of potential candidates. The sale of a new product typically requires a significant investment in human resources and machinery.