What does market development involve?

Market development involves entering entirely new markets with existing products. This strategy focuses on expanding the reach of a business by introducing its current product offerings to new geographical areas or demographic segments that have not previously been targeted. By tapping into these new markets, a company can potentially increase its customer base and sales volume without incurring the costs associated with developing and launching new products.

Market development is key for growth, particularly when existing markets are saturated or experiencing slow growth. This approach allows businesses to leverage their current product capabilities while exploring new opportunities for revenue generation.

The other options do not align with the definition of market development. For instance, creating new products for existing customers pertains to product development rather than market development. Increasing prices to boost profits is more about pricing strategy, and reducing the product range offered could be seen as a consolidation strategy, which contrasts with the idea of expanding into new markets.