Taking a present product into a new geographic market is an example of which strategy?

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

Answer: (B)

Expanding into a new geographic market with an existing product is market development. This approach uses an existing product to reach new customers in different locations, growing sales without changing the product itself. It’s one of the growth options in the Ansoff matrix.

Market penetration would push more of the same product in the current market, through tactics like promotions or price changes. Product development would introduce a new product to the current market. Diversification would pursue new products in new markets, which carries higher risk.