Soon, you could get a touch screen smartphone that offers a high-definition camera, AI-powered voice assistant, 5G connectivity, and a built-in expandable storage option for around ₹8,000. A Netherlands-based semiconductor firm has launched a new, advanced chipset that promises to make this possible. The company is targeting the growing rural market in India. During the next phase of rapid expansion of mobile communication in rural and semi-urban areas of India, the firm aims to meet the aspirations of first-time smartphone users by providing an enhanced multimedia experience.

(a) Explain the stage of the Company's Product Life Cycle mentioned in the paragraph with the help of a diagram.

(b) Name the service to be offered by the Company in the next phase. Explain any two characteristics of Services.

(c) Suggest any two modern ways of marketing the concept of a product. Explain.

(a) Stage of Product Life Cycle — Introduction Stage

The chipset has just been launched, and the company aims to target first-time smartphone users in rural areas. This indicates the Introduction Stage of the product life cycle.

During this stage, the product is born — either entirely new or a new version of a basic product. Competition is virtually absent, the market is limited, prices are relatively high and little is known about the product. Growth in sales volume is at a low rate due to lack of awareness and limited distribution. This stage is risky as a high percentage of new products fail during this period.

(b) Service offered — Mobile communication / Telecommunication services (5G connectivity).

Two characteristics of Services:

1. Intangibility — Services cannot be seen, touched or stored before purchase, unlike physical products. For example, mobile communication services are intangible — the customer experiences the service but cannot hold it physically.
2. Inseparability — Services are produced and consumed simultaneously. The service provider and the customer must interact at the time of service delivery. For example, a phone call is delivered and consumed at the same time.

(c) Two modern ways of marketing a product:

1. Online Marketing / Internet Marketing — This is the latest method of direct selling. Customers can order products 24 hours a day through the seller's website. It is convenient and hassle-free, less expensive for the seller, and helps build customer relationships. Sellers can quickly add products and change prices and descriptions.
2. Telemarketing — The product is heavily advertised on TV. Interested customers place orders by telephone, mail or fax. Products are delivered through courier or VPP. For example, Asian Sky Shop uses this method in India. Some telemarketing systems are fully automated using Automatic Dialing and Recorded Message Players (ADRMPs).