Product Development vs Market Development

Product development vs market development. What are the differences and similarities between these two? What is their purpose? To know more read below.

Product Development vs Market Development

To begin, product development refers to the process of creating or improving a product. It encompasses all the processes and activities that a firm goes through to create a new product or improve an existing one. It is a forward-looking process that focuses on creating better products and services for the future.

Product development is not to be confused with product innovation, which is about bringing new products to market. That’s why organizations that focus on this are often seen as only focusing on the “what” of the business. The problem is, it’s not just about the “what,” but also about the “when and how” of delivering the product to market.

Market development, on the other hand, is the process of creating a market for a product. It is the process of getting customers to recognize the value of a product or service and buy it for that reason. It is about building brand recognition, loyalty, and trust. Market development is not concerned with the “what” of the business, but only with the “why” customers buy.

To be successful, product development and market development must go hand in hand. Both processes influence each other and work together to achieve business goals. How?

Product Development and Market Development: Working Together

Marketing Analysis

When it comes to market development, the first step is to conduct a marketing analysis. This helps you find out what your customers are looking for and what they value. It also tells you about the competition and how to differentiate yourself from them.

With this information in hand, product development can begin. You won’t know exactly what products and services your customers want until you ask them. That’s why it is important to include them in the process. Customers can provide feedback on early versions of a product and help you make changes as needed. They can also help you develop new products that meet their needs.

Product Prototype

When making a product, it is important to build a prototype. A prototype is a sample of the final product that you can show customers and get feedback on before mass production. It allows you to test the market for a product before investing in its production.

A prototype can help you distinguish between invention and innovation. The invention refers to the development of a product that did not exist before. Innovation refers to the act of making an existing product better or more useful for customers. In other words, the invention is about creating something from scratch, while innovation is about improving what you already have. Then, it is time to test it in the real world. 

Conclusion

So, product development and market development both are important. They both focus on the processes of creating a product and getting customers to buy it, respectively. However, they are different in what they do. Product development is about the “what” of the business, while market development is about the “why” customers buy. It is important to remember that their goal is to work together to achieve business goals.