BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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take the product off the market
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do nothing; fluctuations in sales are common
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modify the product to renew customer interest
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triple the advertising budget for the product
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Detailed explanation-1: -Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor’s brand. Which strategy would be mostappropriate to use in this situation? Take the product off the market.
Detailed explanation-2: -Maturity The maturity stage is when the sales begin to level off from the rapid growth period. At this point, companies begin to reduce their prices so they can stay competitive amongst the growing competition.
Detailed explanation-3: -Market Penetration – The concept of increasing sales of existing products into an existing market. Market Development – Focuses on selling existing products into new markets.
Detailed explanation-4: -The main ways to do this are: – Improving the existing product to increase its market share and drive out competitors. – Adjusting the price of the existing product to increase its market share and beat the competition. – Scaling the presence of the new company within the market.
Detailed explanation-5: -Change promotion– Different advertising or sales promotion techniques can prolong the life of the product, giving it a new image.