non digital methods Flashcards
What are extension strategies?
Methods to prolong a product’s life cycle and increase sales
List four main extension strategies.
- Advertising
- Price changes
- Adding value
- New markets
- New packaging
What is the purpose of advertising as an extension strategy?
Reminds customers of the benefits of the product to encourage repeat purchases
How does advertising draw attention to a product?
Highlights the ‘value’ compared to similar products/services
What is a potential downside of intensive advertising?
Very expensive to do effectively
True or False: Advertising allows for direct communication between customers and businesses.
False
What is a benefit of price changes in extension strategies?
Can be linked to a price change to further boost sales
Fill in the blank: The cheapest way to extend a product’s life is _______.
[Advertising]
What seasonal events can be linked to advertising strategies?
Easter, Christmas, Summer holidays
What is a potential limitation of advertising linked to special events?
Sales boost can be short-lived
What types of products are new packaging strategies relevant for?
Only relevant for ‘off the shelf’ products with customer-facing packaging
What is a potential benefit of entering new markets?
Potential for rapid sales growth in new countries
How can new ranges benefit from existing routes to market?
Makes it easy to launch new products
What is a significant cost associated with entering a new market?
Very expensive to set up in a new country
What factor does the success of entering a new market depend on?
Depends very much on the brand and its association with a target market
