How to Build a Market Development Strategy [Free Planning Templates]

Your business is getting by just fine – but still, the questions remain: Could you be selling more? Is there an opportunity to increase market share? Is there any way you could further your product diversification efforts?Your business is getting by just fine – but still, the questions remain: Could you be selling more? Is there an opportunity to increase market share? Is there any way you could further your product diversification efforts? Companies hoping to increase revenue can do so in many ways — such as increasing advertising budgets, expanding sales teams, and investing in product development. However, one often overlooked way to strengthen your gross sales is a purposeful and expertly executed market development strategy. In this article, we’ll explain what market development is and how you can employ it to grow your business. Then, we’ll take a look at some examples of market development strategies that work for top businesses today. Image Source Each category rests upon two axes — one for market and one for risk. A company can expand its efforts into new or existing markets. Each poses more or less risk to the business. Market Penetration When businesses want to expand within their existing markets with low risk, they might attempt a market penetration strategy. In this scenario, TAM increases because by offering a new product or service, a business can effectively increase the maximum amount of revenue it can attain from its existing customer base. A product launch is an effective way to execute this strategy. Product Launches A company may release new iterations of a product they already sell successfully within the market. These iterations could include an improvement to the product that makes it a better fit for customers’ needs, an improvement to the performance of the product, or any other changes you can reasonably market as added value. The purpose of launching a new product is to generate excitement and buzz around the brand to increase sales. Product Development A more high-risk way to expand within an existing market is through product development. Even with its risk, make no mistake — this market development strategy can be rewarding. Developing new products is a delicate process. Businesses should be keenly aware of their market, as market interest is a driving factor for product development. If the audience isn’t receptive due to a lack of education about the product, a poor marketing campaign to promote the product, or even poor timing of launching the product, this strategy can be difficult to execute. However, companies that have failed at developing new products usually have in-depth learnings to apply to their next market development strategy. When it comes to creating new products, consider the category of your product. Entering a space with many competitors will be a different experience than building something in a disruptive category. “If you launch a product in an existing category with existing competitors, you’re playing by their rules and competing on their terms,” says Adrienne Joselow, director of product

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