Respuesta :
Answer:
Product Development Strategy :
- Advantages - Existing customer seize, market share capture
- Disadvantages - Product development & market study cost, First rider innovativeness importance
Market Development Strategy :
- Advantages - Only market analysis needed , market segment & channel expansion
- Disadvantages : Product Modification as per new market, rapidly evolving markets
Explanation:
Product Development Strategy involves growth by introducing new products & services into existing markets
Market Development strategy involves growth by introducing existing products & services into new markets.
Advantages of Product Development Strategy :
- Seizing already existing customer base with new product opportunity
- Market share capture in the existing industry niche
Disadvantages of Product Development Strategy :
- Extra product development, market study cost before revenue earnings
- Important to be competitive first rider innovator of new products, should make sure not to enter a saturated market with an old product
Advantages of Market Development Strategy
- Only market research & analysis needs to be done (not product development from scratch) as the product is already operative
- Expansion by new market segments & new distribution channels
Disadvantages of Market Development Strategy
- Product, marketing modification as per new markets might be a needed analytical step
- Evolving Markets : Efficient new market study & research might be too time consuming , meanwhile the markets might change or evolve.
