2 Extension occurs when product and market competencies are

2. Extension occurs when product and market competencies are understood sufficiently so that ideas lead to action.

Solution

It is a true statement that helps to gauge how the competencies can efficiently help converting the ideas into a more realistic forms in terms of action. Whenever a new product is in the pipeline, the development and marketing of the same depends much upon how well the extension process is designed to make the new product idea feasible one. Extension is further based on the roadmap of what the Company has learnt from its past. This learning forms the basis for the extension. In addition, a firmness and determination in terms of marketing competencies, is also essential to ensure the survival in the new and unexplored markets. Before entering into the new market, it is further necessary to evaluate the area of expertise of the Company in a more elaborated way such that the competitors are dealt in a better way. In this way, with the Product and marketing competencies, the ideas and innovations are given the forms of definite actions.