Which growth strategy involves introducing new products to existing markets?

• A. Market Penetration
• B. Market Development
• C. Diversification
• D. Product Development

Answer: (D)

Product development means introducing new products to existing markets. It relies on the current customer base and distribution channels, aiming to satisfy evolving needs or capture more share from customers who already buy from you. In the broader framework often used in growth strategy (the Ansoff Matrix), this option sits apart from keeping the same product in the same market, moving the same product into new markets, or pursuing completely new products in new markets. An example would be a beverage company adding a new low-sugar flavor line for its existing customers in its current stores. The other approaches involve either using the same product with the same customers (market penetration), selling the same product in new markets (market development), or creating a new product for new markets (diversification), which is riskier.