Market Diversification

Definition: The market diversification step is that period when the product is modified to meet new market opportunities or when new products are developed to meet existing market demand.

Objective: The objective of the market diversification step is to address changing market conditions.

Product: The product of this step is a portfolio of competitive products and multiple markets for products that insulate the enterprise against economic downturns.

Marketing Activities: The marketing activities common to this step are those necessary to diversify the products and markets.

During the market diversification step, the following activities must be accomplished:

• Market environment scanning process

• Technology transfer and/or deployment processes

• Allocation of resources for continued improvement of existing products

• Allocation of resources for new product development

Marketing Information: Implementation of the market diversification step usually will result in knowledge of emerging industries, emerging products, emerging technologies, sources of technology, identification of new enterprise opportunities and threats, and resources for technical assistance in technology development and deployment.

Assessment:

Have you diversified your product line?
Do you have a market environment scanning process?
Do you have a technology transfer and/or deployment process?
Do you make resource allocations for continual improvement?
Do you make resource allocations for new product development?

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