2. Which is ‘product development' growth?
Answer: C
New product, existing market
Product development growth refers to the strategy of introducing new products to an existing market. This approach aims to leverage the established customer base while expanding the product offerings to meet varying consumer needs.
A) New product, new market
This option describes diversification rather than product development. While introducing a new product to a new market is a growth strategy, it does not align with the product development definition, which focuses on enhancing offerings within an existing market.
B) Existing product, existing market
This choice represents market penetration, which involves selling more of the same products to current customers. It does not involve the creation of new products, thereby failing to meet the criteria for product development growth.
C) New product, existing market
This is the correct option as it accurately describes product development growth. It involves creating new products that cater to an existing customer base, allowing for innovation while maintaining market presence.
D) Existing product, new market
This option refers to market development, where existing products are introduced to new markets. While it is a growth strategy, it does not encompass the product development aspect, which specifically requires the introduction of new products.
Conclusion
The correct answer is C) New product, existing market, as it directly aligns with the definition of product development growth. The other options either relate to different growth strategies or do not satisfy the conditions necessary for product development, thereby confirming C's position as the only valid choice.