Which of the following best describes 'product development' as a growth strategy?

Product development as a growth strategy involves enhancing existing products or creating new ones to meet customer demands and market trends. This strategy focuses on innovation and improvement, which can include designing new features, improving quality, expanding product lines, or introducing entirely new products to the market. The goal is to attract new customers or retain existing ones by providing options that are more appealing, useful, or relevant to their needs.

In contrast, entering new geographic markets pertains more to market development, not product development. Increasing customer retention rates focuses on customer relationship management rather than the actual development or enhancement of products. Lastly, reducing marketing expenditures does not align with the concept of product development; instead, it may involve financial strategies unrelated to the core idea of creating or improving products. Overall, the essence of product development is centered on actively evolving the products themselves to foster growth.