Market development involves introducing present products or services into new geographic areas. Several specific approaches are listed in Figure 8-1.
Product development is a strategy that seeks increased sales by improving or modifying present products or services. Product development implies modifications or additions products in order to increase their market penetration within existing customer groups. The idea is to attract satisfied customers to new products as a result of their positive experience with the company's initial offering. The bottom section in Figure 8-1 lists some of the many specific options available to businesses undertaking product development. Product development usually entails large research and development expenditure.