Which strategy introduces a new product to an existing market?

The strategy that introduces a new product to an existing market is product development. This involves creating and launching new offerings designed to meet the needs of current customers or prospects within an established market. The focus is on leveraging the existing customer base while using innovation to enhance product lines or introduce complementary goods.

This approach allows businesses to expand their portfolio and respond to changing consumer preferences without the risks associated with entering an entirely new market. Effective product development can lead to increased revenue from existing customers as companies continuously evolve their offerings to maintain competitive advantage and customer interest.

Other strategies like market penetration focus on increasing sales of existing products within a current market, while market development is about introducing current products into new markets. Diversification, on the other hand, entails launching new products in new markets, which carries more risk and complexity.