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PROF.JOYDEEP BISWAS
KSOM, BBSR SAKSHI KUMARI (22202046)
PREETI CHOURASIA (22202042)
SAGARIKA PATTANAYAK (22202045)
NIKITA DEV (22202038)
ANSHUMAN DAS (22202012)
 1. Explain the different types of consumer products, mentioned below, with
appropriate relevant examples:
Ans.
A. Convenience
Convenience products are bought the most frequently by consumers. They are bought
immediately and without great comparison between other options. Convenience products are
typically low-priced, not-differentiated among other products, and placed in locations where
consumers can easily purchase them. The products are widely distributed, require mass
promotion, and are placed in convenient locations.
Example- Sugar, laundry detergent, pencils, pens and paper are all examples of convenience
products.
A.Staples
Staples are inexpensive convenience goods that people frequently buy. Customers deem these
products essential for carrying out their regular tasks. Since consumers buy these so
frequently, they don't give much thought to which one to choose or how different products
compare. For instance, mother of two young children could routinely purchase diapers to suit
her kids' needs. Since she buys diapers so frequently, she might choose the closest package or
the cheapest option without giving the brand any thought.
Some of the examples of staple goods are:- wheat, rice, bread, flour, milk, cheese etc.

a. Impulse

Impulse convenience products are the products an individual doesn't plan to purchase before
their shopping trip but still ends up buying them. Consumers tend to buy these products because
of encouragement from advertisements or product placement in the store. For instance,
someone checking out at a grocery store may notice a pack of gum next to the cash register that
looks extra minty and decide to purchase it even though it wasn't on their shopping list.

Some of the examples of impulse goods are:- chocolate, snacks, chewing gum etc.

b. Emergency

Emergency products are those required to meet an immediate, unexpected need. These are
items that help solve a problem that may arise, such as buying an umbrella when it rains.
Since consumers purchase these items when emergencies occur, they often don't have time to
research their best option and instead choose what's available in their current location. For
example, someone who gets a headache while visiting a museum may decide to purchase a
pain reliever in the museum gift shop to relieve their pain even though it may cost more than
the pain reliever in the grocery store.
Some of the examples of impulse goods are:- candles, batteries, raincoat etc.
B. Shopping

Shopping products are bought less frequently by consumers. Consumers usually compare
attributes of shopping products such as quality, price, and style between other products.
Therefore, shopping products are more carefully compared against, and consumers spend
considerably more time, as opposed to convenience products, comparing alternatives.
Shopping products require personal selling and advertising and are located in fewer outlets
(compared to convenience products) and selectively distributed.

Example- Airline tickets, furniture, electronics, clothing, and phones are all examples of
shopping products.

a. Homogeneous
Products that are similar in quality but differ in price, style, brand (attributes), etc.
Consumer purchasing behaviour is influenced by these attributes.
Example- washing machines, refrigerators
b. Heterogeneous
Heterogeneous products consist of more variants and SKUs. Product features are more
important here than price
Examples- T-shirts, jeans, coats, and services.
C. Specialty
They have their own characteristics. Buyers are willing to go the extra mile to purchase your
product. These products are expensive and not well compared.
Example- Sports cars, luxury watches, and designer clothing.
D. Unsought products
Products that consumers are not seeking to buy or would not consider buying. There is no
immediate or urgent need for the product.
Examples- Health insurance, fire extinguishers.
Q2. Explain the different types of business products, mentioned below, with appropriate
relevant examples.
Ans.
A. Materials and Parts
a. Raw materials – (i) Farm Products (ii) Natural Products
Farm products: Agricultural products such as wheat, corn, livestock (poultry, cattle, sheep).
These are important because raw materials such as sugar and cotton come from agricultural
products.
Natural products: Anything produced by life that contains natural materials once found in
living organisms and that can be processed into usable products.
Eg: Wood, silk, milk, coal
b. Manufactured – (i) Materials (ii) Components
Manufactured materials: It is a kind of industrial product that perfectly blends into the
manufacturer's product. They fall into two categories: ingredients and ingredients. The
starting material is usually further processed. Pig iron is processed into steel and thread is
woven into fabric. The component transitions into the finished product without further
deformation, much like a tire is attached to a car.
B. Capital Items

Capital goods are physical assets used by businesses in the process of producing goods and
services that are later used by consumers.

a. Installations: Equipment, parts and add-ons required to properly install the product.
Examples: cabinets, power supplies,
b. Equipment: Equipment used to manufacture products, perform services, sell, store, or
deliver goods. This equipment has a long useful life and is properly considered a fixed
asset.
example: Plumbing fixtures, heaters, appliances, built-in shelving and cupboards,
inlaid carpets.
C. Supplies or Business Services
a. Maintenance – (i) Maintenance and Repair (ii) Operating

Repairs can be viewed as restoration work when an asset is broken, damaged, or non-
functional. Maintenance refers to regular activities and/or corrective or preventive
repairs performed on equipment to prevent damage and extend its life. example:
Replace defective or worn parts with equivalent parts, change fleet engine oil, and
clean building structures and systems.

Operating: Service Operations is responsible for developing service strategy and

working with Customer Success, Customer Support, and Customer Experience teams.
The team's goal is to expand the company's customer service organization.

b. Business Services – Advisory

The purpose of such services is to identify potential challenges and how to quickly
overcome these challenges. The idea is to develop and deliver tailor-made, innovative
and comprehensive solutions to specific customer requirements. Examples: Third
Party services.

Q3. Explain the different types of following products, classified based on longevity, with
appropriate relevant examples:
Ans.

a. Durable Goods: Products with an expected lifespan of 3 years or more. These have a
considerable lifespan and do not wear out quickly. They are long-lived, high-cost and
highly volatile, causing consumers to put off spending. for example: Capital goods
(buildings, machinery and equipment used in the production of other goods and services),
consumer durables (automobiles, furniture, appliances)

b. Non-durable Goods: Consumables are purchased for immediate or near-immediate

consumption and have lifespans ranging from minutes to three years. These are consumer
goods that are consumed once or used up in a short period of time. Consumer behavior
 towards consumer goods remains constant as they are purchased regardless of prevailing
economic conditions. Common examples of these are food, beverages, clothing, shoes,
laundry, lightbulbs.

c. Services: A Service is an intangible act caused by a Seller or Provider that results in a

measurable change of state for the Buyer. Service is provided for a period of time.
Consumers can choose to pay once or continue paying through a subscription. Marketing
efforts must focus on building relationships with consumers, as services are not
necessarily designed to solve problems quickly. Eg: Examples of services are legal
advice, house cleaning, consulting services, transportation, medical and education
services.

Q4. Explain the following terms of Product Mix with examples:

Ans.

a. Product Mix Breadth: Basically, product lines and items that a particular manufacturer
plans to produce. A company's product range refers to all products sold by the company. This
could be 5 or 500 items from various product lines, but includes all products produced,
manufactured and sold by the company. The breadth of the product mix also includes all of
the company's various product lines and each product within that line. Product breadth in a
retail environment is sometimes referred to as product breadth or product assortment breadth.
Eg: An automobile company makes and sells cars, trucks, SUVs.

b. Length of Product Line: A product line can be defined as a set of products offered by a
company that are similar in function and utility. These product groups are usually sold to the
same target market through the same distribution channel at relatively similar prices. Length
refers to the total number of products in a company's product mix. Take, for example, the
automaker's 3-series and 5-series models. There are 3 types of cars in each series, so the
product length is 6.

c. Depth/Item Design of Product Mix: Defined as variants available in a product line.

Colgate is available in family, medium and small packs.

d. Consistency of Product Mix: Describes how the product lines are

interconnected/related. They can be connected through distribution channels, end uses and
production.

Q5. Create the Product Mix of Nestle based on the information provided on their
website:
Ans.
The full range of goods and/or services that a company provides is referred to as its product
mix, often known as its product assortment or product portfolio. Product lines, which are
connected goods purchased by consumers, make up a product mix. The collection of products
that a specific seller offers for sale is known as a product mix. It has a certain length, width,
depth, and consistency, is made up of different product lines, and is consisted of.
Nestle has a wide range of products suitable for different market segments. The needs of an
infant, young children, adults who are concerned with their health, and athletes who want a
performance boost are carried out by its product lines.
Product Width:-
It contains the amount of different product lines a company offers. Nestle has 8 primarily
different product lines, as follows: Baby Foods, Bottled waters, Cereals, Chocolate &
Confectionery, Prepared Dishes & Cooking Aid, Dairy, Healthcare Nutrition, Petcare
Product Length:-
It is defined as the number of of items the company carries within its all product lines. If we
take a particular product then under the Chocolate & confectionery there will be multiple
products and same goes with baby foods, so all the product combined form the product
length.
Product Depth:-
A product's depth each product a company offers within a specific segment has a total
number of variations, or mix. The product could contain various variations. An example
would be sizes, flavors, taste, etc. Like if we take Nestle Nutrition portfolio then under that
we have multiple variation like Nestle Lactogrow for 3-6 years, then we have Nestle
Ceregrow for 2-5 years.
Consistency:-
Finally, our four product mix decisions are complete by the consistency of a product mix. In
terms of end use, production requirements, distribution channels, or any other factor, it refers
to how closely related the product lines are to one another. Because they are consumer goods
that pass through the same distribution channels, Nestle's product lines are consistent.
Q6. Describe the 3 fundamental criteria that help an organization make decisions about
the diversity of its Product Mix Breadth – (i) Risk diversification (ii) Leveraging
organizational strengths (iii) Making use of complimentary-in-use products.
Substantiate your explanations with appropriate and relevant examples.
Ans.
1. Risk Diversification: This refers to the circumstance in which the profitability of a
new business will be related to that of an existing firm. As an illustration, if I were
simultaneously releasing a product to prevent toxication and operating a booze
business, it stands to reason that I will experience a loss from one and a gain from the
other.
2. Leveraging Organizational Strength: This means to use the thing in which we are
good at to get what we want. For example, I work with a pen manufacturing company,
and to make every single pen, I need capital. I have the option of leveraging our
capital asset to obtain that capital.
 3. Making use of complimentary-in-use products: Utilising related items already in use
to make the company a "complete solution supplier." For instance, at the Mio Amore
shop, when we order patties, the owner also provides sause, making him a
comprehensive solution provider.
Q7. Describe the 2 ways of differentiating the Product Line from competitor offering –
(i) Vertically
(ii) Horizontally. Substantiate your explanations with appropriate and relevant
examples.
Ans.
The trait or characteristics that set your product or service apart for your target market are
known as product differentiation. It helps you set yourself apart from your competition and
boosts brand loyalty, sales, and growth.
Vertical differentiation:-
When consumers select a product, they rate their selections using an objective criterion, such
as price or quality, from best to worst. Although the measurements are objective, each
consumer may place a different value on them. For Example: One restaurant meal could have
less calories than another. The lower-calorie meal is the "better" choice for a consumer who
is controlling their weight. If a meal costs less, a different consumer who places a larger
priority on pricing might opt for it.
Horizontal differentiation:-
Customers pick between products subjectively when there is horizontal differentiation
because they lack an objective metric to determine which is best or worst. For example, there
is no quality grading system for ice cream flavour rankings. Your preference for chocolate,
vanilla, or strawberry is totally up to you.
The choice to buy a product depends on personal preference if the majority of them cost
around the same and share many of the same characteristics or traits.
Q8. Describe the 9 fundamental criteria that help an organization make decisions about
the length of its Product Lines
a. Customer Heterogeneity
b. Ability to configure the offering to the target segment
c. Competitive impact
d. Legitimization
e. Category size impact
f. Net impact on own margins – will it lead to cannibalization?
g. Brand Equity
h. Cost of variety vs Scale of opportunity
i. Collaborator reaction
Substantiate your explanations with appropriate and relevant examples.
Ans.
Customer Heterogeneity: According to the concept of customer heterogeneity, every
consumer is unique, and everyone has a particular taste and preference. As an illustration,
some clients enjoy ice cream, but others favour frozen yoghurt over ice cream.
Ability to configure the offering to the target segment: Offering appropriate value to the
market's segmented customers comes next after market segmentation. A corporation should
avoid having an impact on its segmented target market while adding products to its existing
product line.
Competitive Impact: Sometimes it's best to hold off on releasing a new product that a
competitor has recently released in order to establish a brand's attractiveness. For instance,
Mama Earth plants a pair of pants for each and every product that is purchased.
Legitimization: A new product shouldn't be more expensive than existing product lines; the
price should be justified. For instance, Burger King released satisfries as a substitute for
conventional fries in 2013. Even though it was produced using a healthier recipe, consumers
did not like it.
Category size impact: Category Size is the number of different categories that are sold under
a single brand name. For basketball players and soccer players, for instance, Nike offers a
number of product lines. The company will lose money if it does not focus on a market
category with a greater market size.
Net impact on own margins - will it lead to cannibalization?: Coca-Cola is one of the best-
known instances of product cannibalization. Coca-goods, cola's which include cherry, vanilla,
and coke zero, are all in competition for the same consumers, which reduces the market share
of coca cold.
Brand Equity: Brand equity is the perceived value of a company's brand in comparison to its
rivals. In this scenario, the consumer typically only remembers one brand and forgets all of
its rivals.
Cost of variety vs Scale of opportunity: The cost of variety includes all the costs associated
with product development and research, and the size of the opportunity includes the capacity
for distribution.
Collaborator reaction: All distributors and retailers who are participating in selling the goods
at their location are considered collaborators. Since they are the ones who deal with
customers on a regular basis, inputs are constantly required for a business. For instance, if a
store sells more and more Cadbury chocolates, it will always be profitable. A diverse
selection of products are offered by Cadbury.
 Q9. Explain the following terms with appropriate and relevant examples:
Ans.

a. Product Line Extension- Product Line extension is a marketing strategy that uses an
existing brand to introduce new items into the same product line. New items may differ
slightly from what the company already offers.
In marketing and production, line extensions are extensions of existing product lines. This
tactic helps businesses expand their reach and target audience by leveraging preparation,
development, and marketing processes that are already available.
a. Brand Extension- Brand extension is the use of an established brand name in new product
categories. This new brand-enhanced category may or may not be related to existing product
categories. Reputable/successful brands help organizations more easily launch products into
new categories. For example, Nike brand flagship products are shoes. But now it's expanded
to include sunglasses, soccer balls, basketballs and golf equipment. An existing brand that
leads to a brand extension is called a parent brand. If the customers of the new business have
a synchronized alignment with the core business values and aspirations, and if those values
and aspirations are embodied in the brand, there is a high possibility that they will be
accepted by the new business customers. Extending a brand beyond simple product
categories is beneficial in that it helps assess product category opportunities, identify resource
needs, mitigate risks, and measure brand relevance and desirability. am.
Example- Rasna Ltd – One of the most famous soft drink companies in India. However, when
it tried to move away from that niche, it didn't have much success. I tried the carbonated fruit
drink Oranjolt and it bombed before the brand took off. Oranjolt was a fruit drink that used
carbon dioxide as a preservative. It didn't work because it wasn't in sync with retail practices.
Oranjolt had to be refrigerated and was also a quality issue. It has a shelf life of 3-4 weeks,
while other soft drinks have a shelf life of 5 months.
Q10. Explain the 5 product levels with examples:-
Ans.
a. Core Product- The core product is not the product itself. A core product is a
concept that describes the benefits that consumers derive from using the product.
That's the main need the product was made for. For example, a car core product is
the core benefit it provides, being able to move quickly. Transport is our core
product. Looks, speed, security, etc. are other perks that come with it.
Example- A commercial for a cruise company features a family of four embarking
on one of their tropical cruises. It focuses equally on each family's experience and
what aspects of the cruise they enjoy. clearly advertises its core products.
a. Generic Product- A generic product is one that is sold under a product name that
represents the actual product rather than the brand name. Such products usually bear
the name of the local store that sells them or a lesser-known name, but they may not
be branded. called. These are cheaper than branded ones and don't have a widely
recognized name or logo. Generics are sometimes made by smaller companies and
sometimes by the same company that makes the branded product. There is also
These products generally do not contain advertising or promotions. Brought in by
customers when found on store shelves.
Example- Retailers sell their own generic soda called "Cola" instead of brand names
like Pepsi or Coke. "Cola" products are considerably cheaper than branded
products.
b. Expected Product- Product expectations are the set of features consumers want in
the product they purchase.
example- Customers who buy headphones probably expect great audio quality and
comfortable earbuds. Different customers may have different expectations of the
same product.
c. Augmented Product- An enhanced product has been enhanced with additional
features or services by the vendor to differentiate it from the same product offered
by its competitors. Product extensions include the inclusion of intangible benefits
or add-ons beyond the product itself.
Example- Apple Inc. (AAPL) launched a video and TV streaming service in 2019.
To increase awareness of new products and boost declining iPhone sales, the
company created add-ons or extensions for anyone who buys the device, as you can
see below on his website at the company-
"Starting today, customers who purchase any iPhone, iPad, Apple TV, iPod touch
or Mac can enjoy one year of Apple TV+ for free."
e. Potential Product- Potential Product This is the fifth level of the product marketing
structure. This includes all modernizations and transformations that the product may
undergo in the future. This is a very important aspect that increases the likelihood that
future product improvements will be introduced, leading to reasonable competitiveness
and maintaining market position.
 Potential products also apply to all activities related to customer service, including
possible returns and complaints. The quality of customer conversations is also
important. These include music, entertainment in a service environment, sensitivity to
potential consumer needs, and the ability of staff to address consumer requests without
consulting a manager.

Q11. Create and design the 5 product levels for a category of your choice.

Ans.
For a company like coco -cola
1.Core Benefits-
The main effect of Coca-Cola is to quench thirst.
2. Generic products-
The generic is a black fizzy and sweet soda with a burnt vanilla flavour.
3. Expected products-
The expected product is your Coca-Cola chilled. Otherwise, the customer's expectations will
not be met and the drink will not taste optimal to them.
4. Augmented products-
Coca-Cola's extension product is to offer Diet Coke. How does Coca-Cola exceed customer
expectations with this product? By offering the great taste of Coca-Cola without the calories.
5. Potential product-
One of the ways Coca-Cola delights its customers is with sweepstakes. The prizes in these
contests are often "money can't buy", such as celebrity experience. Our competitive prices
change frequently to keep our customers happy over the long term.

Q12. Explain the following Augmentation Strategies with examples:

Ans.
a. Physical Augmentation- An Enhanced Product is a product designed by the Seller to
provide some additional benefits and features beyond a purely physical product. These
additional benefits usually come in the form of intangible features or services that accompany
the purchase of that product. Example- Eyeglasses, pacemakers, prosthetics, wearable
devices, chip implants, and genetic modifications.
b. Service Augmentation- Service extensions represent the parts of the service offering that
customers know and respond to, but are not part of the product core. Examples include sales
aspects such as communication, reputation, accessibility, quality of service and physical
environment.
c. Availability Augmentation- A discount coupon for future purchases is an extension of the
product and an offer of a refund if the customer is unsatisfied. A free recipe book is provided
with the purchase of a kitchen appliance such as a crockpot to create an enhanced product.
d. Brand Augmentation- Brands use product extensions to add value to their customers. This
means that customers get key products and some perks for the same price. This allows
companies to gain a competitive advantage and increase their market share. In fact, this is a
win-win situation.
Q13. What are the possible objectives of Product Packaging? Substantiate your
explanations with appropriate and relevant examples?
Ans.
The followings are the possible objectives of product packaging-
• Protection- The primary goal of packaging is to protect the product's physical
content. In the course of delivering the products to the consumers, various
factors such as humidity, vibration, compression, light, and other external factors
can have an impact on the products.
Cooked food are packed in aluminum foil to keep them warm and protect the
food from external factors.
• Containment- A separate package of separate products is not always beneficial.
Some small objects are grouped together to enhance packaging.
• For example, when 100 pens are packaged together it will be easy to handle
instead of when the 100 pens are packaged individually.
• Provide Enough Information- A good packaging includes adequate and
important product information. Such as the established date, the manufacture
date, the price, the quality, the quantity, the ingredients used, the safety tips, the
best for the next few months, how to use, transport, dispose of, recycle, no toxic
substances.
Medicine and cosmetics packaging provide enough information regarding the
composition, manufacturing date, expiry date and other important information.
• Marketing-Another important goal of packaging is to make marketing activities
more fruitful. Attractive and appealing packages are today's most humble
marketers' best friends in luring target markets. Good packages make marketing
efforts like advertising, promotion, and distribution more effective.
Nykaa have a great packaging which help them in marketing of their products.
• Convenience-Packaging is not only used for attractiveness, marketing, or
security purposes most marketers use it to make it convenient for people. Most
people prefer product that are convenient in terms of use, open, close, reclosing,
reopening, recycling, reuse, resale, etc.
 Packaging of toothpaste is for the convenience use of the product.
• Storage-It also supports storing products more efficiently. Well-packaged
products are easy to handle, and transfer, while also reducing the time of
handling products. In addition, packaging’s objectives are to make all the efforts
efficient that involve the logistics chain from the manufacturer to the consumers.
Maggie ,Biscuit , Pickle and food items are packaged in such a way that can be
store like that for long time.
Q14. Give examples of Service Augmentation with respect to the following services
offered:
Ans.
A) Pre-purchase services-
a. Ordering ease- It refer to how easy it is for the customer to place an order with the
company.
Example- Flipkart-
Flipkart is a very good example of ordering ease in pre purchase service. Before purchasing
any product from the Flipkart the consumer can check out the product very conveniently and
also they can get to know all the feature regarding the product and they can place a order in a
minute without any hustle.
b. Trials- Cosmetic products outlet like Sugar, Lakme, Nykaa provide the choice to the
customer to trail the product before purchasing. They provide an option to customer to know
whether they like the product or not.
Retail cloth stores like- Reliance trends, Max provide an option to for trail of clothes before
purchasing.

c. Customer consulting-
Firms like IBM and Accenture are great example of customer consulting offers.
FMCG companies like HUL via their product managers consult their distributor by which
they know the needs of the customer and h help them increase their businesses by installing
software and infrastructure which directly notifies the company when the dealer does not
have stock or about the stocks that he needs.
B) Post-purchase services
a. Delivery- Amazon Prime is the best example of fastest delivery of post purchase. Where
normal E-commerce companies commit 4-6 days delivery, Amazon prime commits the
delivery in 24 to 48 hours max. Moreover, if you are an Amazon prime customer, you get
free delivery too. This immediately attracts the customer towards Amazon.
b. Installation- Companies which sell Air conditioners or technical equipment like Ducting
equipment have to differentiate themselves through their services. After purchasing any
technical equipment, the company reach to you and install the equipment.
c. Customer training- Many businesses recognize the importance of customer training and
have made it a standard part of their installation procedures. When you order a stove at home,
the mechanic personally explains how to use it. When you order a washing machine, you can
have a demo call as well as the washing machine delivered. These are methods for instructing
the customer on how to use the machine properly so that he is satisfied with your service.
McDonald's, Pizza Hut, and Domino's are all rapidly expanding franchises that always have
training centers to train their customers' employees. Keep in mind that in these cases, the
distributor or franchisee is also the fast food chain's internal customer. These fast food
restaurants then train their managers on how to manage their franchises and teach franchise
management to their employees in the future. This creates a complete chain of
comprehension, resulting in very few customer complaints.
d. Maintenance and repair- Dell and IBM have onsite engineers who handle all customer
needs. They also ensure that the network is operationally sound and handle regular
infrastructure maintenance and repair. These top companies understand that a network
breakdown or improper server operation can have a significant impact on their employees'
overall productivity. As a result, maintenance and repairs are handled with caution.
e. Returns- E-commerce sector like Flipkart , Amazon have the best return policy . After
purchasing a product if the customer did not like the product or get any defective piece then
they can return the product very easily. They have 30 days return policy and the service boy
will reach to you to take your product back.
C) Ancillary Services- Netflix is the best example of Ancillary services. Other example
includes Amazon prime videos, Hotstar etc.
Q15. Give examples of Availability Augmentation with respect to the following services
offered:
Ans. A. Place Utlity: Swiss chocolates. They are associated with Switzerland as a place but
they are in demand everywhere so the availability at other places increases the revenue and
also strengthens the brand.
B.Time Utility: sales of boots and gloves spike in the winter, while ice cream sees
greater demand during the summer.
C.Form Utility: While some companies offer lower prices by shifting the responsibility
of assembly to the consumer (e.g., that new dresser that you bought and had delivered,but
still need to assemble on your own time), finished forms are often more valuable to
customers.
D.Possession Utility: Consider plastic storage bins. While they might be sold in the
“kitchen” section of an online or brick-and-mortar store, consumers are free to
repurpose the items as they see fit once they take possession, increasing their overall
utility.
Q16. According to the “Diffusion of Innovation” theory by Rogers, 5 characteristics
decide the rate of adoption of the new product. These are:
a. Relative Advantage
b. Compatibility
c. Complexity
d. Trialability
e. Observability
Explain the above mentioned product attributes with respect to a new launch and
substantiate your explanations with appropriate and relevant examples.

Ans.

1. Relative advantage measures how much an innovation is an improvement over

competing options or previous generation products. Potential users want to see how
innovations improve the current situation. Improvements can be made in one or more
of the following areas:
o better service
o Integrate multiple functions into one tool
o Reduce the need for materials and equipment
o user empowerment
o improved interface
o better customizability
o extended lifespan
o increased productivity
o Reduce user effort reduced environmental impact
o save money and storage
o Save time.
2. Compatibility refers to the extent to which innovations are compatible with
individuals as they blend into their lives. Potential adopters need to know that your
innovation fits into their lives and lifestyles. Innovations are more likely to fail if they
require significant lifestyle changes or require users to purchase additional products to
make them work. Innovation is most successful when it can be seamlessly adopted by
users, when it replaces an existing product or idea with a better one. Apple's iPad is an
example of an innovation that was highly compatible with the lives of potential users
when it was released. Many users were able to replace the product they were currently
using when the iPad was released. B. Smartphones and laptops for checking email,
reading books, magazines, blogs, and watching videos online.
3. Complexity or simplicity describes how difficult it is for users to learn how to use the
innovation. Complexity slows the wheels of progress. The more complex an
innovation, the harder it is for potential users to integrate it into their lives. Potential
users usually don't plan a lot of time to learn how to use the innovation. The more
intuitive the innovation, the more likely it will be adopted. A device for separating
Oreo cookies is an example of something too complicated to be useful. Even if people
felt they needed a machine to separate Oreos, the effort required to use such a device
would be very difficult to launch. Potential users will have to read the instruction
manual over and over again to set it up correctly. This machine is another example of
the compatibility feature. The size of the machine is incompatible for potential users
who don't have a whole room for an oleo separator. A handheld or pocket version of
this innovation is much more likely to succeed.
 4. Triability describes how easily your innovation can be explored by potential users.
Tryability is important to drive adoption of innovations. Potential users want to see
what an innovation can do and test it before committing. This is the basic concept of a
physical product trial and a digital product demo or beta. Potential adopters can see
for themselves what their lives would be like if they adopted your product.
5. Observability is the extent to which the consequences or benefits of using an
innovation are visible to potential adopters. In my first article, I mentioned that not
everyone embraces innovation right away. Adopter types that follow early adopters
rely on the members of that group to use the innovation. Observability goes beyond
early adopters and uses innovations for later adopters. Potential adopters of all kinds
should have a clear understanding of the benefits of adopting and utilizing
innovations.

Q17. Explain the following types of New Products and substantiate with appropriate and
relevant examples:
Ans.
a) Incremental improvements of existing Products - incremental innovation is the
concept of growing or improving a business through a series of small improvements
to existing products, services, processes, and tools. These small changes focus on
improving the company's productivity and performance, as well as the efficiency and
user experience (UX) of its products and services. Companies can reduce costs and
differentiate themselves from their competitors through incremental innovation. Over
time, companies can leverage incremental innovations to improve their market
position and build a larger audience interested in new and improved product features.
Automaker Toyota has built a global reputation for incremental innovation. At the
heart of the Toyota Production System is the Kaizen philosophy, which empowers
employees to embark on a quest for continuous improvement. Employees are
constantly looking for ways to maximize quality and efficiency in everything they do,
from work processes to equipment use to waste disposal.
b) Expansion of existing Product Lines - Line expansion refers to the process of
expanding an existing product line. Companies with established brands introduce
additional items to their product categories. The company leverages the value of
existing products to market and introduces consumers to new options. The purpose of
the line expansion is to meet demanding customer segments of the market. For
example, why do you know Jack Daniel's brand right away? If you answered whiskey,
you are correct. But Jack Daniel's also sells other products in the food and beverage
sector, including barbecue sauces, pecans and even coffee.
c) New Product to the firm, but not to the world - These products are not new to the
market, but they are typically new to the company. Companies develop these products
to enter already established markets for the first time. These products are often similar
to competing products already on the market, but with certain differences. A good
example of a new product line is Microsoft's entry into the video game system market
with the Xbox.
d) New-to-the world products/radical innovation - Radical innovation is a
transformative business model aimed at completely destroying and replacing existing
industries or creating entirely new industries. It takes an existing system, design, or
invention and transforms it into something completely new. You can change parts of
your system, your system's processes, or both. Radical innovators don't just update
 existing ones, they create entirely new markets for their products. Netflix is a prime
example of the role radical innovation can play in disrupting an industry. When
Netflix entered the home entertainment industry (as a mail-order DVD rental
company) in 1997, Blockbuster, an established company and Netflix's main
competitor, underestimated Netflix's threat. Instead of demanding radically
revolutionary changes to counter Netflix's entry into the market, Blockbuster sat back
and did nothing. We know how this story ends. Now Blockbuster is obsolete and
Netflix is a household name.
Q18. Explain the following types of New Product Development processes and substantiate
with appropriate and relevant examples:
Ans.

a. Concept Testing is a type of New Product Development process in which a new product idea
is presented to a group of target consumers in order to gauge their reactions and gather
feedback. This can be done through focus groups, surveys, or other research methods. The
purpose of concept testing is to determine whether the product concept is viable and whether
it is likely to be successful in the market.

b. BASES (Best Alternative to a Negotiated Agreement) is a structured approach to New

Product Development that involves evaluating the potential success of a product idea by
comparing it to the best alternative option. This process involves identifying the key features
and benefits of the product and comparing them to the benefits of similar products or options
in the market.

c. Spiral Development is a type of New Product Development process in which the product is
developed iteratively, with each iteration building upon the previous one. This process involves
breaking the development process down into smaller, manageable chunks, and focusing on one
chunk at a time. Each iteration is called a "spiral," and each spiral involves designing, building,
and testing a specific aspect of the product.