Online Strategies - Market Development Strategy
Market development is an integrated development strategy that defines and develops various segments of the online market for existing products. The strategy uses different marketing models, including search engine marketing, pay per click, media buying and affiliate programs. It actively promotes new customers in different segments against existing customers. The main aim of market development strategy is to improve the quality of service and product while lowering the cost of production. The strategies helps in segmentation of markets and improving brand awareness. The market development strategy uses several innovative techniques like market segmentation, research and analysis, financial data analysis, consumer surveys, and target setting.
There are many benefits of market development strategy. The strategy helps to segment the existing products and finding out the demand of the segment. For instance, if you are operating in the dental care sector and focus on providing dental services, it is easy to identify the groups of people who need and want dental services. There are new product segments, like cosmetic dentistry, orthodontics and dentures, which can be developed for these groups. You can focus your market development strategy towards them to get new business and help them in increasing their revenues. Online Market Development Strategy can be carried out using Gawdo.
Another important advantage of market development strategy is that it provides a clear picture about the demand, creating a target market and defining the growth strategies. This allows you to develop new segments for new products and services and start new business opportunities. You can segment the market according to geography, age group, income group and other factors.
The growth strategy identifies the target audiences, helping in product identification, quality improvement and sales drive. It defines the sales and customer reach for the product offering and helps in future work, if any. It helps in defining the ways in which you can sell more, better and faster. It refers to the measured performance of your marketing or promotional activities and their impact on sales. It is also used to evaluate the marketing mix.
The new market development strategy identifies the key influencers of purchasing decisions and how to work with them. This enables you to concentrate on one or two key influencers and work with them to drive sales. This includes measurement of results and analysis of advertising and promotions.
A good market development strategy should include a good mix of advertising and promotions. Advertising and promotions efforts often become time consuming and have limited reach for a small set of target markets. For large target markets, they can result in higher ad costs and less effective reach. Growth strategies also depend on the nature of a product line and targeted audiences. Some product lines are suitable for mass distribution, while others are not suitable for this type of distribution.
Marketing and promotion efforts can result in lower profits and limited customer satisfaction. Good market development strategies to address these issues by creating new market share. One way to create new market share is to leverage existing product lines to offer complementary products, services and value added features. For example, if your company makes shoes, then you could position your shoes under a new product line that makes top of the line fashionable baby shoes. You could position your new product line under your existing products to gain a foothold in the baby shoe market.
Your company needs to have an online presence. An online presence allows you to have a more effective customer contact strategy. Creating a website is cheap and time effective. Many companies choose to outsource their web presence however, this approach may not provide the best return on investment. Outsourcing web presence however, can be the right strategy for the right timing and the right product line.