BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The cash from this product can be used to milk and inject into some of other products in the portfolioMaintain the cash cow for as long as possibleAs the product has a strong presence in the market, businesses can even charge slightly higher prices to increase their profit margin
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Quick decision is needed if sales do not improve; revised design, re-launch or withdrawal from the marketInvestment is needed to cope with expanding sales in a fast growing market
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Maintain the market positionSo the business needs to invest in the product to cope with a growing market and growing sales-therefore promotion costs will be high to differentiate (through branding) the product and reinforce its brand imageCash flow may be nearly zero because although profits will be high, bringing money in, spending will also be high leading to outflows
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Replace shortlyWithdraw from the market altogetherRe-positioning
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Detailed explanation-1: -Your product marketing strategy is a roadmap for how you position, price, and promote your new product in the market. It’s what tells you where your biggest fans are and how to reach them. Your strategy should integrate with the product life cycle, informing how you market your product from development to growth.
Detailed explanation-2: -Market leaders’ three competitive strategies are market size expansion, market share protection, and market share expansion.
Detailed explanation-3: -There are three standard types of product positioning strategies brands should consider: comparative, differentiation, and segmentation. Through these strategies, brands can help their product stand out by targeting the right audiences with the best message.
Detailed explanation-4: -Market expansion is a growth strategy which involves offering your existing product/service to a new market. This “new market” is generally outside of the current geographic regions in which you currently operate.