Market development strategy

The market development strategy is usually long-term. The launch prices of new products are set in such a way that sufficient unit profits are only achieved at the end of the market launch and when the planned sales are reached.

This strategy is intended to deter potential competitors and to bring the consumption of the products and thus the quantity sold to the long-term optimum relatively quickly. If this strategy is combined with quality and customer-friendly service, the company will achieve high customer preferences, i.e. regular customers. To put it simply, European companies are often said to have a skimming strategy, while Japanese companies almost regularly follow the market development strategy.

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