Extention Strategy

Question 1

What is extension strategy

Answer 1

Things business can do to prolong the product life cycle

Question 2

Examples of extension strategy’s

Answer 2

Advertising - increase advertisement to new and other people
Price change - lower the price to encourage sales
Adding value - change product size etc
New packaging - made more appealing

Question 3

What is product differentiation

Answer 3

When your product stands out from competitors

Question 4

How is product differentiation usually done

Answer 4

Through a USP

Question 5

What is USP

Answer 5

Unique selling point

Question 6

Also achieve product differentiation through…

Answer 6

Establishing strong brand image - brand name strap line etc
Getting the design mix model correct
Offering an improved location
Offering additional features
Improving design and appearance
Getting selling price right

Question 7

What is External factors of product development

Answer 7

This is something outside of the business that effect the product with no control over it

Question 8

Example of external factors

Answer 8

Technology - any use of tech
Economic factors - money such as rates of unemployment
Legal issues - new Law etc

Question 9

How to consider selling price

Answer 9

Income of target customers
Competitors
Cost of production