product chap54

Question 1

What are the three things value analysis balances between?

Answer 1

• function
• aesthetics
• cost to the economy

Question 2

How does value analysis help manufacturers?

Answer 2

it helps them focus on the main characteristics of the product

Question 3

What are the 4 stages of the product life-cycle?

Answer 3

• introduction
• growth
• maturity
• decline

Question 4

What does the term ‘extension strategies’ mean?

Answer 4

Extension strategies are things a business does to extend their product life-cycle e.g new packaging

Question 5

Examples of extension strategies…

Answer 5

• new advertising/packaging
• new pricing
• new/added product features
• promotion

Question 6

What is happening at each point in the product life-cycle?

Answer 6

Introduction - product is first launched, sales begin, advertising is high
Growth - customers are familiar with the product, sales and profit increasing
Maturity - sales have reached their highest, competition is high, not as many new customers
Decline - sales begin to fall, customers loose interest, eventually the product is removed