Which strategic concept is described by "new products, new markets"?

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

Answer: (B)

Diversification involves entering both new markets with new products. This combination moves away from current offerings and existing customers, bringing new revenue streams but also higher risk because both the product and the market are unfamiliar. The other paths fit different combinations: market development uses existing products in new markets, product development uses new products in existing markets, and market penetration focuses on increasing share with existing products in existing markets. So “new products, new markets” best describes diversification.