Marketing - Product

Question 1

Product life cycle diagram

Answer 1

DIGMSD

• sales begin at introduction and end at decline
• profits begin just before growth, end at decline

Question 2

Explanation for DIG

Answer 2

• Development, no sales, making loss
• Introduction, slow sales, smaller loss
• growth, sales rise rapidly, profits begin

Question 3

Explanation for MSD

Answer 3

• maturity, sales peak, profits slowly fall
• saturation, sales fall, profits fall rapidly
• decline, sales fall rapidly, profits fall rapidly

Question 4

Advantages of diversified product portfolio

Answer 4

• spreads the risk if one product fails, others to rely on
• maximise sales, attracting different market segments
• consumers see variety of products, brand recognition
• increased market share, needs of different market segments

Question 5

Extension strategies and impacts

Answer 5

• lowering price, appeals to more segments
• changing place, more potential customers see
• changing packaging, can make product seem new
• changing use, appeal to more segments, cadburys mini rolls