Analysis of Pro-Market Concept of Business Model Discussion

Market development, product development, and penetration

Introduction

The three concepts, market development, product development, and penetration, are all strategies in Ansoff Model. According to Rojek (2019), the Ansoff Model assists marketers in identifying chances to increase income for a company by producing new products and services or expanding into new markets. Below is a discussion of the differences between the concepts;

Differences between Market development, product development, and penetration

Soltani-Fesaghandis and Pooya (2018) define market development as a strategy to sell existing products into new markets. This strategy is less risky as it does not need product development or investing in research and development. Instead, it enables a corporate to take current products and sell them in a new market. Its approaches include; international expansion, regional expansion, and serving a different target demographic. An example of market development is a healthcare institution that decides to sell its products and services to new customers. Product development, on the other hand, is more concerned with introducing new products to an existing market. A company that has successfully captured a marketplace’s or essential demographic’s attention may seek to increase its wallet portion from that current customers. Analysis of Pro-Market Concept of Business Model Discussion

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In product development, a company might need to invest in R&D to create a new product or acquire the rights to sell a product from another firm (Rojek, 2019). An example might be a clinic that sells drugs for asthma and may also sell drugs for obesity to the same existing marketing hoping that the market will adopt it. Market penetration refers to increase sales of an existing product into existing marketing. With a market penetration strategy, managers aim to sell much of their current products to marketplaces in which they are familiar and have established ties. Market penetration strategies include reducing prices to draw in more clients, enhancing marketing efforts or optimizing distribution procedures, and acquiring a competitor in the same market segment (Soltani-Fesaghandis & Pooya, 2018). An example is reducing a price of a certain product that a company sells to attract more customers.

Conclusion

It is, therefore, necessary for a company to choose a strategy depending on its needs. It is also noted that some strategies are more expensive than others; thus, the budget will be essential, too, in the choice. Understanding each strategy may impact the business so long as it is effectively employed is imperative. Analysis of Pro-Market Concept of Business Model Discussion

References

Rojek, T. (2019). Analysis of pro-market concept of business model. Marketing and management of innovations, (2), 266-281.

Soltani-Fesaghandis, G., & Pooya, A. (2018). Design of an artificial intelligence system for predicting success of new product development and selecting proper market-product strategy in the food industry. International Food and Agribusiness Management Review, 21(1030-2019-593), 847-864. Analysis of Pro-Market Concept of Business Model Discussion