Question

“It is better to market a new product quickly and then upgrade the design later than incorporating all design modifications and improvements before launching the product.” Do you agree/disagree with this statement? Justify your answer and provide at least one example.

Answer 1

A-1: It is better to market a new product quickly and then upgrade the design later than incorporating all design modifications and improvements before launching the product.

We can agree with the above statement based on the following reasons:

1. Marketing and launching a new product creates revenue generation for a manufacturing company which can then employ the sales proceeds back into Research and Development to improvise and upgrade the product, instead of the product being a locked up investment sitting in the factory / plant and creating expenditures until fully completed before launch. This statement does not hold good and is not applicable for safety upgrades or safety designs. Safety cannot be compromised and must always first be completely finished and tested before launching. For example in the automobile sector, safety design and upgrades must be completed before the launch of the product/s, however further upgradations towards luxury and appearance designs can be made subsequent to the launch.

2. This statement holds good and is true for the consumer electronics industry and the gaming industry where products are launched and upgrades are released periodically to both software and hardware components. This creates continuous demand and supply. It whets the curiosity of the consumers and keeps consumers continuously engaged with the product and in turn brand. The gaming industry needs to keep on upgrading as consumers who are gaming addicts complete the game and crave for more and easily lose interest and patience in a brand that does not keep up with the insatiating consumer demands. Further, this statements holds good for industries which have stiff competition and the differentiating factor in terms of the product options available in the market. Examples are Apple iphones, Samsung smart phones, Samsung and Sony smart televisions, smart home appliances, airlines in the luxury category, luxury hotels, xbox, etc.