What strategy typically involves expanding existing products into new markets?

The strategy that focuses on expanding existing products into new markets is known as market development. This approach involves taking a product that already exists in the company’s portfolio and finding new customer segments or geographic regions where the product is not currently being sold. The goal is to increase sales by tapping into a larger market base without changing the product itself.

Market development can be particularly effective for businesses looking to grow their revenue by leveraging their existing product offerings. By entering new markets, companies can foster brand recognition and loyalty in new customer segments, ultimately enhancing their market share. This strategy facilitates risk reduction, as the product has already established a certain level of acceptance and proven its value in existing markets.

In contrast, other strategies like market penetration focus on increasing market share within existing markets, product development emphasizes creating new products for the same market, and diversification involves introducing entirely new products to new markets. Understanding these distinctions helps clarify how market development specifically relates to the push for growth through existing products in new areas.