Question

Which of the following is one of the key characteristics of a product development strategy?

a) selling existing goods and services to new customers
b) attracting new customers with new products
c) creating new goods and services for existing markets
d) increasing sales of existing goods and services to existing customers

Answer 1

A key characteristic of a product development strategy is creating new goods and services for existing markets. Firms focus on differentiating their products and on core competencies to innovate effectively within their customer base.

Step-by-step explanation:

One of the key characteristics of a product development strategy is c) creating new goods and services for existing markets. This approach involves innovating and developing new offerings to satisfy the needs and preferences of a company's current customer base.

By making products that are distinctive in terms of physical aspects, location, intangible aspects, and perceptions, firms can achieve product differentiation. Successful businesses often focus on their core competencies, offering a selective range of products that capitalize on their strengths, rather than spreading resources across a wide array of products.