Product development is the name given to a growth strategy where a business intends to bring new items into existing markets. This system may require the improvement of new abilities and requires the business to create modified items which can sell to the existing markets. A strategy of product development is especially appropriate for a business where the item should be differentiated in order to remain competitive. An effective item advancement procedure puts the promoting accentuation on: ? Research and advancement and development ? Point by point experiences into customers’ needs (and how they change) ? Being first to marketDiversification is the name given to the growth strategy where a business markets new products in new markets.This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience.
For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. However,For the right balance between risk and reward, a marketing strategy of diversification can be highly rewarding.