Module 4

Question 1

How does Kellogg’s utilize product diversification?

Answer 1

By introducing new cereal brands and flavours over the years.

Question 2

How does Kellogg’s meet changing consumer preferences?

Answer 2

• Product diversification
• Health and nutrition focus
• Innovative packaging
• Catering to dietary restrictions
• Collaborations and limited editions
• Expanding global presence
• Reduced sugar and fortified cereals
  Embracing organic and natural trends

Question 3

What are the 4 key strategies to help us stay competitive, meet customer demands and drive growth?

Answer 3

1. Modify Product and/or Reduce Costs to Increase Value
2. Find new uses and/or users
3. Highlight gaps in the product line
4. Eliminates products as necessary

Question 4

Why is it crucial to modify products and/or reduce costs?

Answer 4

• Enhances customer satisfaction
• Boosts competitiveness
• Optimizes costs and maintains profitability while delivering value to customers
• Supports sustainability efforts

Question 5

Why is it crucial to find new uses and/or users?

Answer 5

• Expands market reach and diversifies revenue streams
• Encourages product adoption
• Strengthens brand reputation

Question 6

Why is it crucial to highlight gaps in the product line?

Answer 6

• Identifies lucrative market opportunities and creates a cleat roadmap for product development.
• Promotes customer loyalty - Increases cross-selling potential and encourages customers to explore the entire product range.

Question 7

Why is it crucial to eliminate products as necessary?

Answer 7

• Frees up resources allows the organization to focus on high-impact, high-potential products.
• Improves operational efficiency and streamlines production, marketing, and distribution processes.
• Demonstrates the company’s commitment to maintaining a relevant and competitive product portfolio.

Question 8

What are the stages of the product lifecycle?

Answer 8

1. Introduction Stage
2. Growth Stage
3. Maturity Stage
4. Decline Stage

Question 9

List some rules of thumb to ebsure effective decision-making and avoid potential pitfalls when marketing throughout the lifecycle stages:

Answer 9

• Avoid rigid categorization
• Don’t rely solely on lifecycle assumptions
• Consider external factors
• Continuously monitor and reassess
• Avoid neglecting existing customers
• Be prepared for disruptions
• Avoid neglecting innovation

Question 10

What is the introduction stage?

Answer 10

Your product is launched into the market. Consumers are unfamiliar with it and competition may be limited.

Question 11

How can you adapt your marketing in the introduction stage?

Answer 11

Focus on creating awareness, generating buzz, and esttablishing a stong market presence.

Question 12

What is the Growth Stage?

Answer 12

Your product gains momentum and market acceptance. Competitors may start entering the market, and demand for your product increases.

Question 13

How can you adapt your marketing during the growth stage?

Answer 13

Shift focus towards expanding your market share, maintaining customer satisfaction, and sustaining growth.

Question 14

What is the maturity stage?

Answer 14

The maturity stage signifies market saturation, intense competition, and slower growth rates.

Question 15

How can you adapt your marketing strategy during the maturity stage?

Answer 15

You must differentiate your product and focus on customer retention.

Question 16

What is the decline stage?

Answer 16

The decline stage represents a shrinking market and diminishing demand for your product. It may be caused by technological advancements, changing consumer preferences, or market saturation.

Question 17

How can you adapt your marketing during the decline stage?

Answer 17

Consider strategies such as product diversification, market exit, or finding niche markets.

Question 18

What are the stages of the product adoption curve?

Answer 18

• Innovators
• Early adopters
• Early majority
• Late majority
• Laggards

Question 19

Who are the innovators in the product adoption curve?

Answer 19

• The earliest adopters who seek out new products and innovations.
• They represent a small percentage of the market, usually around 2.5%.

Question 20

Who are the early adopters in the product adoption curve?

Answer 20

• The early adopters make up about 13.5% of the market.
• They are opinion leaders and influencers within their social circles.

Question 21

Who are the early majority in the product adoption curve?

Answer 21

• This group constitutes around 34% of the market.
• The early majority is more cautious than early adopters and will wait to see how the product performs in the hands of others before making a purchase decision.

Question 22

Who are the late majority in the product adoption curve?

Answer 22

• Comprising approximately 34% of the market, the late majority adopts the product once it has become well-established and widely accepted.
• They are often skeptical of change and may need more convincing before trying something new.

Question 23

Who are the laggards in the product adoption curve?

Answer 23

• Laggards are the last group to adopt a new product, making up the remaining 16% of the market.
• They are typically resistant to change and may only adopt the innovation when it becomes necessary.

Question 24

Who purchases the product in its introduction stage?

Answer 24

Innovators

Question 25

Who purchases the product during its growth stage?

Answer 25

Early adopters and the early majority.

Question 26

Who purchases the product in its maturity stage?

Answer 26

Late majority.

Question 27

Who purchases the product in its decline stage?

Answer 27

Laggards