Today, we will learn about product development versus market development in this article. Also, we will know how to do both of these processes. So, keep on scrolling.
Product Development Versus Market Development
Product development refers to the process of designing, testing, and marketing a product. It is the first step in creating a new product. If a company wants to increase its sales and profitability, it should have a good product. A good product satisfies the needs of consumers.
The product development process can be divided into five basic steps. Such as idea generation, screening, concept development, design specification, and commercialization. Then, this process can be referred to as market development.
Market development is the process of creating a market for a product. It is the second step of introducing a new product in the market. The company should first create a good product and then create a market for that product. There are three main processes involved in this stage. Such as segmentation, targeting, and positioning.
The goals of product development and market development differ in some areas. For one, the former aims to create a new product, while the latter aims to create a market for that product. Also, the former is involved in developing products only, while the latter is involved in developing both products and markets.
In addition, the first one deals with designing and testing the product only, while the latter deals with designing and testing both products and markets. Firms can use various marketing strategies to develop markets. Such as promoting a new product using advertisements. Or they can use business-to-business marketing channels such as direct sales, sales promotion, or personal selling.
The Importance of Product Development and Market Development
Even though both of these processes differ, they are both very important for a company. Why? Firstly, they allow companies to increase their sales, and profits, which will result in higher profitability. If a company can develop a new product and market for that product, it can become more profitable. Because they will be able to increase their sales and market share.
Secondly, product development has to do with the creation of new products. A good product satisfies the needs of consumers. It has to solve the problems of people or meet their expectations. If a company develops a good product, it can increase its market share easily.
Thirdly, market development has to do with creating a market for a company’s product. If a company can develop a market for its product, it will be easier for them to increase its sales and market share as well. Because consumers will know about the existence of the product and they know where to buy it.
Finally, both of these processes make companies more competitive in the world economy. A company that develops products cannot compete easily in the world economy. Because there are many other companies which have already developed products only as well.
Product development deals with designing and developing new products only. While market development deals with both designing and developing new products as well as designing and developing new markets for those products. So, if we look at these processes closely, we’ll see that they both differ in many ways.