What is a Market Development Strategy?
A Market Development Strategy is an expansion plan put in place to introduce an organization's product or solution to users in new markets they are not yet currently serving.
Market expansion can be achieved in different ways and what is best suited to an organization depends on if:
- the target segment is ready for the product or solution. Has a need been identified and does the product and solution solve it? It is critical that rigorous consumer and market research and data is able to support this.
- the organization has the resources in place to implement the strategies
- it is profitable to explore the untapped markets at a particular time.
Work on Market Development Strategy is part of the Strategy stage of the product management process.
Market Expansion Strategy examples
Some common Market Expansion Strategy examples include:
- Geographic expansion: Expanding your product's reach geographically to gain new leads and opportunities.
- Pricing: Introducing offers, discounts and different pricing structures to attract new customers.
- Distribution: Introduce new innovative distribution channels to reach out to new customers.
- Attracting competitors’ customers: Show and prove to potential new customers why your product or service is the best option for them.
- Product development: Tailor an existing product for a new market.
- Upselling: Finding ways to sell more to existing customers.