Market Development

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					Market Development


     Philip M Russell
4 Mechanisms

   Market Penetration
   Market Development
   Product Development
   Diversification Strategies
Market Penetration

   Better Customer Services
   New Promotion
   Market Share growth – compete more
    effectively on-line
   Customer loyalty program
   Customer Value Improvement
Improved Customer Services

   Happier customers
   Improved reputation
New Promotions

   Trying to reach new customers with
    the existing products
   Persuade existing customers to return.
Market Share Growth

   Companies can only compete more
    effectively on line
       Need to convert visitors to sales
       Improve marketing communications
       Search Engine marketing
       Affiliate marketing
       On line advertising
Customer Loyalty
Improvement

   Company can be more value to a
    customer
   Migrate existing customers by adding
    value to existing products,
   Existing services
   Other own brands
Customer value improvement

   Decreasing the cost to serve
   Increasing purchase or usage
    frequency or quantity with increasing
    costs
Market Development

   Targeting a geographic region
   New customer segments
Targeting a geographic region

   Low cost international advertising
   No necessary support infrastructure
   Ryan-Air and Easy-jet enable low cost
    exports.
New customer segments

   Existing products sold to new types of
    customers
   RS Components 10% business direct
    to customers
   Argos – 10% business to business
Product Development

   New Information or Digital products
   Adding value to existing products
   New charging or payment models
   Increasing product range
New Information or Digital
products

   Market for information on products
   New ways of delivering the information
   New ways of using the same old
    product
Adding value to existing
products

   New versions of the same
New charging or payment
models

   Pay per use
   Subscription
   Software as a service
Increasing product range

   Create similar models
   New specifications
Diversification Strategies

   Diversification into related businesses
   Diversification into unrelated
    businesses
   Upstream integration with suppliers
   Downstream integration with
    intermediaries
Diversification into related
businesses

   Low cost airline moving into hotel
    booking,
   Insurance
   Car rental
Diversification into unrelated
businesses

   Promote less related products to
    customers
   Done by Virgin brand
Upstream integration with
suppliers

   Data exchange with a manufacturer or
    retailer
   Take more control of the supply chain
Downstream integration with
intermediaries

   Data exchange with distributors