Which marketing strategy involves the creation of new products for existing markets?

Product development is a marketing strategy that focuses on creating new products specifically for existing markets. This approach aims to leverage the established customer base and market knowledge to introduce innovative solutions that meet the needs or preferences of current consumers. By developing new products, companies can enhance their offerings, increase customer satisfaction, and potentially capture additional market share, all while minimizing the risks associated with entering new markets or attracting entirely new customer segments.

This strategy often involves research and development efforts to create products that address evolving customer demands or rectify gaps in the current product line. Successful product development requires a deep understanding of customer needs, technological advancements, and competitive positioning within the existing market.

In contrast, market development refers to introducing existing products into new markets, diversification involves creating new products for new markets, and retention strategies focus on keeping current customers engaged with existing products.