Understanding the Market — Entrepreneurship STD 11 Commerce — Question

Market development strategies involve selling the firm's existing products to new groups of customers. It implies exploring new markets for the existing product-both nationally, internationally. The new groups of customers can be searched in terms of:

1. New Demographic Market: Demographics are used to characterize customers based upon their:

• Income.
• Marital status.
• Standard of living.
• Education.
• Age and sex.

For example: Tata Nano caters to a segment of middle income group.

2. New Product use: An entrepreneur might find out that people use its product in a way that was not intended or expected. This new knowledge of product use provides insight into how the product may be valuable to a new group of buyers.
3. New Geographical Market: This simply suggests selling the existing products in the new locations and new markets. This has the potential of increasing sales by offering the product to customers who have not previously had the chance to purchase its products. While opting for this approach an entrepreneur must be aware of:

• Customer's preferences.
• Language.
• Legal requirements.
• Regional differences etc.