Question
A bank notices that small businesses frequently face
short-term cash shortages and introduces a flexible overdraft facility tailored to them. This is an example of:Solution
Product development involves creating a new or modified product for an existing market segment. Here, the bank identifies a need among existing small business customers and introduces a new overdraft product. Why Other Options Are Incorrect • A. Undifferentiated marketing: Same product for all segments. • B. Market penetration: Selling more of existing product. • C. Market development: Entering new market with existing product. • E. Cost leadership: Competing mainly on cost. Banking Example: Custom overdraft facility designed for MSME clients.
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