Market development targets non-buying customers in currently targeted segments. It also targets new customers in new segments in order to expand the potential market. New users can be defined as: new geographic, demographic, institutional, or psychographic segments. Another way is to expand sales through new uses for the product.
Before developing a new market, companies should think about the following: Is it profitable? Will it require the introduction of new or modified products? Is the customer and channel researched and understood?
If a company believes that their strength lies with their products and they believe their products would be enticing to new customers, then a company may want to use a market development strategy.
New Product Development
New product development is a process that has two parallel paths: one involves the idea generation, product design, and detail engineering; the other involves market research and marketing analysis. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief). Companies typically see new product development as the first stage in the overall strategic process of product life cycle management used to maintain or grow market share.
If a company believes that their strength lies with the customers, then they should consider a product development strategy.