What is diversification in marketing?

Diversification in marketing involves expanding a company's offerings by introducing new products into new markets. This strategy is aimed at spreading risk and increasing opportunities for growth by tapping into different customer segments and potentially reducing dependence on existing products. By diversifying, a company can also take advantage of new market trends and consumer demands, which can lead to increased sales and market share. It allows businesses to innovate and explore various niches that may be more lucrative or sustainable in the long run.