Which growth strategy involves adding new products to the current market to satisfy additional customer needs?

• A. Market development
• B. Market penetration
• C. Product development
• D. Diversification

Answer: (C)

Introducing new products to satisfy additional customer needs within an existing market is product development. This strategy leverages what you already know about your customers and the market to expand your offerings, aiming to increase sales or deepen loyalty by meeting more of their needs. For example, a company that already sells beverages in a particular region could add a new flavor line or a healthier option to the same distribution channels and customer base. This differs from expanding into new markets with existing products (market development), trying to gain a larger share of the same market with the current product (market penetration), or launching new products in new markets (diversification). The focus here is on growing the current market by introducing new products.