Market Development: Examples, Definition & Process

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Production Orientation: Definition & Examples

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
Your next lesson will play in 10 seconds
  • 0:01 Market Development Defined
  • 0:25 The Process of Market…
  • 1:20 Examples of Market Development
  • 2:12 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Speed Speed Audio mode

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Shawn Grimsley

Shawn has a masters of public administration, JD, and a BA in political science.

If you are not growing in business, you are often dying. In this lesson, you'll learn about market development, including what it is and how it works. You'll also have a chance to take a short quiz after the lesson.

Market Development Defined

Market development is a business strategy whereby a business attempts to find new groups of buyers as potential customers for its existing products and services. In other words, the goal of market development is to expand into untapped markets. These potential customer groups may already be served by competitors or may not be currently marketed to by anyone for the product.

The Process of Market Development

Market development is a two-step process. It starts with market research. You need to engage in segmentation analysis to determine which market segments are worth pursuing. A segment is simply a small slice of an overall market. You can segment a market along demographic, geographic, psychographic (based on values and lifestyles), and product-benefit lines.

Once you have determined which market segments are worth pursuing, the second step of market development involves creating a promotional strategy to penetrate the new market. For example, you may decide to engage in an aggressive television and direct mail campaign. You'll also have to consider the pricing of your product. If there are competitors in the market, then you may opt for penetration pricing, where you aggressively price your product lower than the competition in order to quickly obtain a large share of the market and customer loyalty.

Examples of Market Development

If you look at the commercial world around you, you'll probably notice a lot of market development going on. Here are a handful of examples:

A consumer electronic company notices that individuals aged over 60 do not buy its products even though the products serve unmet needs and wants. The company decides to enter the market through aggressive advertising and product demonstrations at local senior community events.

A small fast food chain has successfully grown its market to all major cities in its state of formation and decides to expand to bordering states. A direct mail campaign informs those states' residents about the new restaurant in town.

To unlock this lesson you must be a Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account