Under the Ansoff matrix, introducing a new product into a new market is called:
Correct answer: A. Diversification
- A. Diversification
- B. Market penetration
- C. Market development
- D. Product development
Explanation
Diversification combines a new product with a new market and therefore normally carries the greatest uncertainty in the Ansoff matrix. Market penetration uses an existing product in an existing market, while the other two options change only one element.
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