Final answer:
Market development is a growth strategy focused on expanding the market for existing products and services to new customers or regions, rather than altering products as suggested in the question. It is distinct from product differentiation, and it's essential in today's competitive global and technological marketplace.
Step-by-step explanation:
The statement suggests that market development is about creating new products or services to market to existing customers, but it's actually the other way around. Market development is a strategic approach in which a company tries to expand its market for its existing products and services. Rather than focusing on product differentiation — where a company alters or enhances its products to distinguish them from others in the market — market development seeks to identify and develop new markets or new segments of existing markets.
For instance, when a business wants to target a new geographic area or promote its offerings to a different customer demographic, it's engaging in market development. The business will not necessarily change its current products, but will instead try to tap into a new set of potential customers. This strategy is vital for businesses looking to grow in a competitive environment fueled by factors such as technology improvements and globalization. In today's world, with the internet breaking down barriers, companies can reach customers globally, increasing competition and the importance of innovative market development strategies.