Which marketing strategy involves modifying an existing product to attract more customers?

The correct answer is product development. This marketing strategy focuses on enhancing an existing product or creating a new variant of it to better meet the needs and preferences of customers. By modifying elements such as design, features, or quality, companies aim to make the product more appealing, thereby attracting a larger customer base and increasing sales.

Product development is crucial for businesses seeking to maintain competitiveness in a dynamic market. It allows firms to respond to changing consumer desires or emerging trends, thereby creating additional value and differentiation from competitors. This strategy is particularly effective when a business already has established distribution channels and customer relationships, which can be leveraged to promote the improved product.

In contrast, market development refers to efforts to enter new markets with existing products, market penetration focuses on increasing market share with current products, and diversification involves introducing new products into new markets. These strategies do not emphasize modifying existing products specifically to enhance customer appeal, which is the core principle of product development.