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Market development strategy

Market development strategy This is an example of a marketing strategy used to attract new customers. To do this, either the geography of sales is expanding. (strategy of geographic expansion), or customers are attracted to the territory already developed by the company ( strategy of creating new markets ).

A good example here is the actions of Johnson & Johnson, which literally created a new group of buyers of baby shampoo from nothing.

New product development

Statistical analysis and demographics indicated that the firm was under a UK Phone Number List threat: sales were about to decline due to the falling birth rate. Johnson & Johnson marketers noted that many adults also use baby shampoo occasionally. Based on this fact, the company’s advertising campaign was built, and sales of the product went up sharply.

Market development strategy

Often a market development strategy takes the approach of finding new uses for a product. A classic example of the implementation of this method was demonstrated by Du Pont, whose specialists invented nylon. There are a lot of ways to use this material, but over time they all dried up.

Power Strategy

However, it seemed so only at first glance, Du Pont found new uses for nylon over and over again. From it began to make women’s stockings, men’s shirts, carpets, and tires, even parachutes. As soon as another area of ​​​​application of the material was found, the company’s profits increased again.

Among other things, this version of the marketing strategy can be aimed at expanding the market space. A simple thought is conveyed to customers.

For example, Procter & Gamble is trying to convince people that if Contact Email List you double the single dose of Head & Shoulders shampoo, then its effect will be much more effective.

In addition, serious enterprises can allocate funds for large-scale scientific research, create developed distribution networks and conduct large advertising campaigns. There is no need to look far for examples: the manufacturers of Marlboro cigarettes and Electrolux refrigerators, the Toyota auto concern, and the KamAZ corporation are fully enjoying their advantages.

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