Which statement describes market penetration, product development, and market development as growth strategies?

• A. Market penetration increases share in existing market; product development adds new products to current market; market development enters new markets with existing products.
• B. Market development focuses on increasing market share in current geographies.
• C. Product development reduces costs in the current market.
• D. Market penetration is about entering new markets with new products.

Answer: (A)

Growth strategies described in the Ansoff Matrix include market penetration, product development, and market development. Market penetration aims to grow by capturing a larger share of the existing market using tactics like promotions, pricing, or increasing usage. Product development focuses on creating new or improved products for the current market to attract more customers or increase sales. Market development involves taking the current products into new markets, such as different geographic areas or new customer segments.

The statement combines these definitions accurately: market penetration increases share in the existing market; product development adds new products to the current market; market development enters new markets with existing products. That alignment makes it the best answer.

The other descriptions mix up the terms or apply them incorrectly—for example, suggesting market development is about increasing share in current geographies, or that product development is about reducing costs, or that market penetration means entering new markets with new products.