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    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:
    A Undifferentiated marketing Correct Answer Incorrect Answer
    B Market penetration Correct Answer Incorrect Answer
    C Market development Correct Answer Incorrect Answer
    D Product development Correct Answer Incorrect Answer
    E Cost leadership Correct Answer Incorrect Answer

    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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