Product Extension Strategies

Question 1

Price Reduction

Answer 1

reducing price increases demand if product is price elastic

Question 2

Advertising

Answer 2

advertising to remind customers of product’s existence

Question 3

Redesigning

Answer 3

introducing special features/limited editions that creates additional value

Question 4

Brand Extension

Answer 4

launching a modified/new edition of existing product

Question 5

Product Differentiation

Answer 5

strategy used to make product stand out from other similar ones offered by rivals

Question 6

Changing Brand Name

Answer 6

often used when product has gained negative publicity in order for it to have a fresh start

Question 7

Repositioning of Product

Answer 7

exploring new markets for the product by adding a new use to it

Question 8

Repackaging

Answer 8

changing the packaging
of a product to help revive demand (e.g. more attractive colours or materials)

Question 9

New Markets

Answer 9

entering new market for product such as selling in different retail outlets