Which term describes the methods a business uses to prolong the life of a product once sales begin to fall?
Extension strategies
What is meant by 'adding value' as an extension strategy?
Improving the specification of an existing product
Which term describes selling an existing product in a new geographic area or to a new target demographic?
Exploration of new markets
What is meant by 'new packaging' as an extension strategy?
Changing how a product is packaged to attract customers
Which term describes changing the price of a product to increase demand from customers?
Price changes
What is meant by 'advertising' as an extension strategy?
Using promotions to remind customers about a product
Which statement about products is correct?
Products can be goods or services
Why might a business use an extension strategy for one of its products?
To make the product sell for longer
Which is a disadvantage of using an expensive advertising campaign to extend a product's life?
Sales may only rise while the campaign runs
A furniture company cuts the price of its best-selling range to extend its life. What is the main disadvantage of this?
The profit made on each item sold is lower
A phone company adds a better camera to its existing handset to boost falling sales. Which extension strategy is this?
Adding value to the product
Why might a business decide not to add a new feature to a product to extend its life?
Developing the new feature may be costly
A UK jam maker starts selling its existing products in shops in Canada. Which extension strategy is this?
Exploring a new geographic market
What is the main risk of using exploration of a new market to extend a product's life?
The product may not be accepted in the new market
A business sells its existing product to a new group of customers, such as adults instead of children. Why can this extend the product's life?
It can increase sales without developing a new product
Which of these is a possible disadvantage of using new packaging to extend a product's life?
The new packaging may appeal less than the original
A clothing business finds that sales of its range have fallen among teenagers but are steady among other customers. Why is advertising a good way to extend the range's life?
It can be aimed at the group whose sales have fallen
A pizza takeaway lowers the price of its pizzas to extend the life of the product. Why might this increase sales?
Customers may switch from a rival takeaway
A drinks company changes the packaging of its product to extend its life. Why might this increase sales?
Some customers may think the product is new and try it
A soft drinks company sells its drink in the UK and in Ireland. UK sales are falling while Irish sales are still rising. Why does this help the company?
Growth in one market can balance decline in another
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