To counter competition, the marketing team could look at the penetration pricing where you can aggressively price the product below competitors product to gain market share. If there are competitors in the market, you may have to price the product accordingly or come out with a product which belongs to the same segment but differs in features, quality etc. For that, companies may have to take the support of both audio and visual media to push the product deeper into the market.Īnother aspect is the pricing of the product. Once the company decides which segment to choose, the next step of market development involves creating a promotional strategy to enter into the market. For example, the marketing team of the company can divide the market based on geography, demographics as well as income levels etc. A segment is defined as the small sub-group of a larger population. The goal is to expand the reach or tap into a different segment or unexplored market. It is an attempt to use the existing product or service to attract new customers. It begins with market research wherein a company does a segmentation analysis and short ists market segments which are worth pursuing. The company looks for new buyers to pitch the product to a different segment of consumers in an effort to increase sales.ĭescription: Market Development is a 2-step process to tap the untapped market. Definition: Market development is a strategic step taken by a company to develop the existing market rather than looking for a new market.
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