Extension Strategies Flashcards
What are the 7 extension strategies?
Lowering the price of the product e.g. through a ‘sale’.
Changing the place the product is sold e.g. online selling.
Altering the methods of promotion.
Developing variations of the product e.g. new flavours.
Rebranding the product.
Changing the packaging.
Changing the use of the products.
What’s the impact of lowering the price of the product?
Reducing prices will make the product more affordable and therefore appeal to more market segments.
What’s the impact of changing the place the product is sold?
Making the product available in more places will mean it is seen by ore potential customers e.g. using e-commerce will mean a product can be sold worldwide.
What’s the impact of altering methods of promotion?
Changing the way a product is promoted can increase sales simply by raising awareness of that product.
What’s the impact of developing new variations of the product?
Developing new varieties can mean the product appeals to the tastes and desires of different market segments. Updating the product can utilise the latest technology so make customers want the product again e.g. annual launches of the latest, updated smartphones.
What’s the impact of rebranding the product?
Changing the name of the product can create ‘hype’. A new name can appeal to different or wider market segments e.g. Jif changed to Cif as they found that continental Europeans couldn’t pronounce Jif.
What’s the impact of changing the packaging?
Redesigning the packaging can make the product appeal to a new market segment e.g. Harry Potter books also come in a more mature-looking front cover to entice more adults to buy them.
What’s the impact of changing the use of the product?
Extending or changing the use of a product can make it appeal to new markets or suit seasonal tastes e.g. Cadbury’s Minirolls were released in ice cream inspired flavours and are suitable for freezing, ideal for summer.
