Which strategy involves expanding by selling existing products in new markets?

Which strategy involves expanding by selling existing products in new markets?

• A. Market Penetration
• B. Market Development
• C. Franchise
• D. Merger

Answer: (B)

Expanding by selling existing products in new markets is Market Development. This approach keeps the product the same but seeks out new geographic areas or new customer segments to grow sales. The idea is to reach customers who haven’t been exposed to the product yet, using the same brand and offering, which often requires some adaptation to fit the new market but not new product development. This differs from Market Penetration, which aims to gain more share in the current market with the same product—typically through promotions, pricing, or increasing usage. Product Development would involve creating new products for the existing market to attract customers. Diversification mixes new products in new markets, broadening the scope beyond current offerings and regions. The other options describe different growth paths, such as expanding distribution through franchising or pursuing growth via a merger.

Expanding by selling existing products in new markets is Market Development. This approach keeps the product the same but seeks out new geographic areas or new customer segments to grow sales. The idea is to reach customers who haven’t been exposed to the product yet, using the same brand and offering, which often requires some adaptation to fit the new market but not new product development.

This differs from Market Penetration, which aims to gain more share in the current market with the same product—typically through promotions, pricing, or increasing usage. Product Development would involve creating new products for the existing market to attract customers. Diversification mixes new products in new markets, broadening the scope beyond current offerings and regions. The other options describe different growth paths, such as expanding distribution through franchising or pursuing growth via a merger.