Market Opportunities is your sizing forecast for a specific product or service, now and over the next several years. At a minimum, you should know that information in terms of sales dollars. Market Opportunity Analysis tool to identify and access the attractiveness of a business opportunity. It is a part of the business planning or strategy processes wherein before undertaking a new product or service, you analyze the market for it to determine probable profit and revenue from it.
Four Types of Market Opportunities
Market Penetration is a measure of the number of sales or adoption of a product or service compared to the total theoretical market for that product or service. In addition, market penetration can also include the activities that are used to increase the market share of a particular product or service. Market penetration techniques include any action done for the purpose of increasing overall market share, whether by encouraging consumers of similar products to switch to the company’s product or by increasing the amount of the population that can be considered potential customers. Lowering prices and most forms of advertising are done to promote market penetration. Bundling products can also help gain traction in previously untapped portions of the market.
Market Development is a Know growth strategy that identifies and develops new market segments for current products. A market development strategy targets non-buying customers in currently targeted segments. It also targets new customers in new segments. The goal is to expand the reach or tap into a different segment or unexplored market. A segment is defined as the small sub-group of a larger population. the marketing team of the company can divide the market based on geography, demographics as well as income levels etc. Once the company decides which segment to choose, the next step of market development involves creating a promotional strategy to enter into the market. For that, companies may have to take the support of both audio and visual media to push the product deeper into the market.
Product Development also called new product management, it is a Market Opportunities with a series of steps that includes the conceptualization, design, development, and marketing of newly created or newly rebranded goods or services. Five phases of new product or service development
- Idea generation.
- Research and development.
Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio constructed of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio. The specificity of the targeted asset classes and the transparency of the holdings ensure true diversification, with divergent correlations among securities, can be achieved. Fund managers and investors often diversify their investments across asset classes and determine what percentages of the portfolio to allocate to each. These can include stocks and bonds, real estate, ETFs, commodities, short-term investments, and other classes.