Market penetration, market development, and product development are sometimes referred to as intensive strategies because they require intensive efforts if a firm’s competitive position with existing products is to improve. If a company has $1 million to spend on a new strategy and is considering market development versus product development, what determining factors would be most important to consider?

If a company has $1 million to spend on a new strategy and is considering market development versus product development, the most important determining factors are the company’s preexisting product. If a company believes in its product, it should try to promulgate that product with market development. If a company lacks confidence in its product, it should invest in product development to try to create a product worthy of market development.

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If a company has $1 million to spend on a new strategy and is considering market development versus product development, one factor that would be important to consider is the viability of the company’s existing product. If a company believes it has a solid product, it should focus on market...

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If a company has $1 million to spend on a new strategy and is considering market development versus product development, one factor that would be important to consider is the viability of the company’s existing product. If a company believes it has a solid product, it should focus on market development. A company that has confidence in its product should invest in market development so that the benefits of the product can reach the applicable consumers.

The company’s efforts should be directed toward familiarizing people with its product and helping them understand why they should want their product in their lives. With a dynamic product already under its belt, a company would be better off sticking with its quality product instead of starting from scratch and trying to come up with another enticing product.

If a company isn’t confident about its current product, the situation changes. If a company concludes that its product lacks widespread appeal in the current economy, regardless of the particular market, it should apply the $1 million to product development. It doesn’t make much sense for a company to create a market development strategy for a product it doesn’t have faith in. In this case, a company needs to establish a product that it can stand behind and that warrants market development.

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