The success of an organisation will depend, ultimately, on what bundles of benefits it offers to consumers; the decisions about what the firm should be offering need to be made in the light of the consumer’s needs and wants. There is a strong positive relationship between a firm’s innovative activities and its ability to survive and prosper,1 so many companies place a strong emphasis on developing new products to replace those which become obsolete, or which are superseded by competitors’ offerings. Marketers define a product as being a bundle of benefits. This means that the product is more than just the sum of its physical characteristics; it includes fringe elements such as the brand image, the way the product is packed and delivered, even the color of the box it comes in. Primary characteristics are those core benefits of the product that it has in common with its competitors; auxiliary characteristics are the features and benefits that are unique to the product.
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