The strategy of selling an existing product in a new market is called

• A. Market Development
• B. Product Development
• C. Diversification
• D. Horizontal Expansion

Answer: (A)

The main idea being tested is growing by reaching new markets while keeping the product the same. In the growth framework commonly taught, taking an existing product and selling it in a market where you don’t currently compete is market development. This often means expanding into new geographic regions, new customer segments, or new distribution channels, and may require adjustments to pricing, promotion, or packaging to fit the new market.

This is different from product development, which means creating or significantly changing a product to sell in your existing market. Diversification would involve offering a new product in a new market, which carries more risk. Horizontal expansion isn’t the standard term used in this framework for entering new markets with an existing product.