In the Ansoff Matrix, which growth strategy focuses on existing products in existing markets?

In the Ansoff Matrix, which growth strategy focuses on existing products in existing markets?

• A. Market Development
• B. Market Penetration
• C. Product Development
• D. Diversification

Answer: (B)

Focusing on expanding within current markets using the existing product lineup. Market Penetration aims to grow market share by selling more of the same products to the same customers, through tactics like competitive pricing, stronger promotions, better distribution, or loyalty programs. It’s generally lower risk because it leverages what the company already knows well—the product and the market. The other options move away from this setup: market development targets new markets with existing products; product development introduces new products to the existing markets; diversification hits new products in new markets.

Focusing on expanding within current markets using the existing product lineup. Market Penetration aims to grow market share by selling more of the same products to the same customers, through tactics like competitive pricing, stronger promotions, better distribution, or loyalty programs. It’s generally lower risk because it leverages what the company already knows well—the product and the market.

The other options move away from this setup: market development targets new markets with existing products; product development introduces new products to the existing markets; diversification hits new products in new markets.