Market Development vs. Market Penetration
MARKETING 101 TIME SO GATHER ‘ROUND:
These are two very important terms in marketing. Let’s look at businessdictionary.com’s take on each one. First off, “market development”:
Expansion of the total market served by a firm by (1) entering new segments of the market, (2) converting non-users into users, and/or (3) increasing usage per user.
Next up, here’s businessdictionary.com’s definition of “market penetration”:
Increasing market share of an existing product, or promoting a new product, through strategies such as bundling, extensive advertising, lower prices, or volume discounts.
Before I took my current marketing class for my MBA, I did not know the difference between these two terms. If anything, I thought “market penetration” meant “to PLUNGE your advertising dagger into new markets”. Nope.
Market penetration is concerned with practices that develop your current market- discounts, loyalty programs, and specialized advertising. The much more plainly-named market development is concerned with identifying and pursuing new markets. The more you know…