Explanation:

Product Modification refers to the improvement of the existing products by making necessary changes in the characteristics, nature, size, packing and colour, etc., of the products so that the changes in demand of consumers may be dealt effectively. The purpose of the product modification is to maintain existing demand, attract new users and to face the competitors effectively.  It helps in increasing the sales of the enterprise which results in increase in the profits of the enterprise. The term “Product Modification” has been defined by the following eminent authors.

Philip Kotler: “A product modification is any deliberate alteration for the physical attributes of a product or its packing”.
Stanton: “Even a slightly changed product either in colour, design or in quality is a completely new product”.