BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The company will make changes or upgrades to existing products to make it “new” again with customers who bought the 1st verison of the product as in the example of the iPhone
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The company will choose to delete or remove products from their product line when sales fall below a certain level because there is no demand for it.
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The company will develop new products to meet a need that has not yet been met or to compete with another company.
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Detailed explanation-1: -4) Improvements and revisions of existing products: These are the new products that replace existing products by providing improved performance or greater perceived value. For example, Microsoft replaced its MS-DOS by Windows as an improved, user-friendly GUI (Graphical User Interface) based operating system.
Detailed explanation-2: -For example, many companies that sell flat irons that are used to straighten women’s hair have upgraded to ceramic irons because they allow for a more even distribution of heat. Similarly, software firms routinely increase revenues by coming out with “updated” versions of an existing software product.
Detailed explanation-3: -Why Product Development is Important. Product development strategies are important to ensure value for your potential customers, as well as ensuring that there is demand and that your final products are of the highest possible quality before your take the products to market.
Detailed explanation-4: -The first and most important reason for any new development is to provide new value to the customer. Without this, there is no reason for them to trade their money for the new device. However, if the product or service offers overwhelming value, then customers will flock to it.