Which statement best describes market development in Ansoff's matrix?

• A. Market development means entering new markets with existing products.
• B. Market development means developing new products for existing markets.
• C. Market development means diversification into unrelated industries.
• D. Market development means improving internal processes.

Answer: (A)

Market development in Ansoff's matrix means entering new markets with existing products. The idea is to grow sales by reaching new customer groups or geographic areas without changing the product itself—the company leverages the same offering but exposes it to a different audience or location, often adjusting marketing, distribution, or pricing to fit the new market. For example, a beverage company that starts selling its current drink in a new country is pursuing market development.

This differs from developing new products for existing markets (product development), which adds new offerings for current customers; diversification, which involves entering unrelated industries; and improving internal processes, which is about operations rather than expanding into new markets with current offerings.