Which mid-risk growth strategy involves selling new products in existing markets?

• A. Market Development
• B. Market Penetration
• C. Product Development
• D. Merger

Answer: (C)

This tests your understanding of the growth options in the Ansoff Matrix. Selling new products to customers you already serve fits product development. You’re staying in your current markets (the same customers and channels) but introducing something new, which carries more risk than simply selling more of the same products yet less risk than moving into new markets or products simultaneously. Market development would be new markets with existing products, market penetration is more of the same products in the same markets, and a merger is an entirely different inorganic growth route. So the best fit is product development.