Compare the advantages and disadvantages of Ben & Jerry's attempting to expand sales revenues by using (a) a product development strategy or (b) a market development strategy

Product Development Strategy:

Advantages - Existing customer seize, market share capture Disadvantages - Product development & market study cost, First rider innovativeness importance

Market Development Strategy:

Advantages - Only market analysis needed, market segment & channel expansion Disadvantages : Product Modification as per new market, rapidly evolving markets

Explanation:

Product Development Strategy involves growth by introducing new products & services into existing markets

Market Development strategy involves growth by introducing existing products & services into new markets.

Advantages of Product Development Strategy:

Seizing already existing customer base with new product opportunity Market share capture in the existing industry niche

Disadvantages of Product Development Strategy:

Extra product development, market study cost before revenue earnings Important to be competitive first rider innovator of new products, should make sure not to enter a saturated market with an old product

Advantages of Market Development Strategy

Only market research & analysis needs to be done (not product development from scratch) as the product is already operative Expansion by new market segments & new distribution channels

Disadvantages of Market Development Strategy

Product, marketing modification as per new markets might be a needed analytical step Evolving Markets : Efficient new market study & research might be too time consuming, meanwhile the markets might change or evolve.