Match List I with List II

List I Market Expansion Strategies		List II Description
(A)	Market Penetration	(I)	New products, New markets
(B)	Market Development	(II)	Existing markets, Existing products
(C)	Product Development	(III)	Existing products, New markets
(D)	Diversification	(IV)	Existing markets, New products

Choose the correct answer from the options given below: 

The correct answer is A-II, B - III, C - IV, D - I.

Key Points

• Market Penetration:
  • This involves growing sales of your existing products or services in your current markets.
  • You might use marketing or pricing changes to get more customers to choose your product over rival products.
  • This strategy aims at increasing market share in an existing market.
• Market Development:
  • This involves trying to sell your existing products or services in new markets.
  • These new markets could be in different geographical areas, like a new country or city, or they could target new customer segments.
  • The goal is to reach more customers with your existing offerings.
• Product Development:
  • This is about creating new products or significantly upgrading existing ones to sell to your current market.
  • This could come from innovations in technology, shifts in customer needs, or opportunities to outdo competitor offerings.
  • The aim is to increase sales by offering new or enhanced products to your existing customers.
• Diversification:
  • This involves entering a new market with a new product.
  • Companies try to diversify when they see an opportunity in a completely different market and they have the resources and skills to seize it.
  • The goal here is to expand business operations and explore new growth areas, though this comes with higher risks since both the market and product are new.