Question 25

Market development growth involves introducing existing products to new markets.

This strategy focuses on expanding the reach of current products by targeting new customer segments or geographical areas.

A) New product, new market

This option describes diversification rather than market development. In diversification, a company introduces new products to new markets, which is a different growth strategy altogether.

B) Existing product, new market

This is the correct answer as it directly aligns with the concept of market development. This strategy involves taking an established product and finding new audiences or locations to sell it, thereby expanding the market footprint.

C) New product, existing market

This choice refers to product development, where a company introduces new products within its existing market. While this is a valid growth strategy, it does not pertain to market development.

D) Existing product, existing market

This option indicates a strategy focused on maintaining or enhancing market share with current products in the existing market, which does not reflect growth through market development.

Conclusion

Market development specifically pertains to promoting existing products in new markets, making option B the only correct choice. The other options describe different strategies that do not align with the definition of market development, emphasizing the importance of understanding distinct growth strategies.