Key Difference – Product Development vs Market Development
The key difference between product development and market development is that product development is a strategy that focuses on developing new products in existing markets whereas market development strategy identifies and develops new market segments for existing products. Product development and market development are two quadrants in the Ansoff’s growth matrix that demonstrates four ways in which a company can expand and grow. It was developed by H. Igor Ansoff in 1957 and is in wide use by a number of firms. The other two quadrants in the growth matrix are market penetration and diversification.
内容
1.Overview and Key Difference
2.What is Product Development
3.What is Market Development
4.Side by Side Comparison – Product Development vs Market Development
5.概括
什么是产品开发?
产品开发是一种策略,在该策略中,企业开发新产品或产品类别并在现有市场中销售它们,即到同一客户群。这种策略可以由具有既定品牌的知名公司成功实施,因为客户通常毫不犹豫地从知名品牌购买产品。此外,通过向客户提供更多购买选项,公司可以将其限制在购买竞争对手产品中。产品开发涉及大量的研发成本,因为需要引入创新和独特的产品来吸引客户。
例如。这家可口可乐公司大力投资于研发,并引入了许多新的软饮料,这些软饮料具有不同的口味,例如可口可乐香草和Fanta Icy Lemon。此外,该公司还推出了新的软饮料类别,例如Minute Maid和Thumbs。
Time to market is an essential aspect that companies should consider in line with a product development strategy. New products should be made available in the market as and when customers need them. This is specifically true for technology products such as mobile phones where competitors constantly introduce new versions.
What is Market Development?
Market development is a growth strategy that identifies and develops new market segments for existing products. A market development strategy can be implemented mainly by the following ways.
- 进入新的地理市场
This is a strategy mainly adopted by multinational companies to expand their businesses. Expanding into a new geographical market requires significant investment and proper analysis of the potential market prior to making the initial investment since this is a risky way of business expansion. Sometimes entering into a new geographical market can be restricted in some countries. In that case, companies can consider a merger or a joint venture to enter such markets.
例如。Starbucks, to widen their global reach, entered into Middle East and South Africa .
- Targeting new customers in new segments
如果可以为现有产品获得新的客户细分市场,则相当于市场开发。
例如。约翰逊的婴儿产品成为婴儿的热门选择之后,该公司开始在标语“最适合您最好的婴儿”标语下为成年人宣传产品。
What is the difference between Product Development and Market Development?
Product Development vs Market Development |
|
Product development is a strategy that focuses on developing new products in existing markets. | Market Development strategy identifies and develops new market segments for existing products. |
风险 | |
在许多竞争对手提供类似产品的行业中,风险很高。 | 如果公司进入许多成熟公司的市场,则涉及高风险。 |
Significant Cost |
|
Research and Development is the most significant cost in product development. | Market development has to incur a significant cost in the form of market research. |
概括– Product Development vs Market Development
The difference between product development and market development depends on whether new products are offered to existing market (product development) or whether existing products are introduced to a new market (market development). Suitable strategy to adopt for expansion depends on the corporate strategy while both strategies have their own benefits and limitations. Both product development and market development strategies require significant finances and are not easily practiced by companies with limited scale. A proper assessment of the target market, the tastes and preferences of customers and the nature of the competition should be thoroughly examined prior to investing in either strategy.
参考
1.“”Using market research to develop a product range – A Coca-Cola Great Britain case study。”产品开发 - 利用市场研究开发产品范围 - 可口可乐英国|可口可乐大不列颠案例研究和信息|商业案例研究。N.P.,N.D。网络。2017年5月2日。
2.“How to Choose a Market Development Strategy。”板岩。N.P.,N.D。网络。2017年5月1日。
3. “Market Development Strategy。”Ansoff Matrix – Market Development Strategy. N.p., n.d. Web. 02 May 2017.
Image Courtesy:
1.尼尔·特纳(Neil Turner)的香草可口可乐。((CC BY-SA 2.0), 通过Flickr
2. Starbucks Rosebank in South Africa byStarbucks.com
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