GENERAL KNOWLEDGE

Detailed explanation-1: -Trading up consists of adding the high-price-prestige products in its existing product line. The new product is intended to strengthen the prestige and goodwill of the company. New prestigious product increases popularity of company and improves image in the mind of customers.

Detailed explanation-2: -Trading Up: A company adds a higher-cost product to an existing line to improve brand image and increase demand for its lower-cost products. Trading Down: A company adds a lower-cost product to an existing line of higher-cost products.

Detailed explanation-3: -Trading up refers to the adding of higher priced and more prestigious products to their existing line in the hope of increasing the sales of existing low priced products.

Detailed explanation-4: -There are three main product line strategies: Product line length, Product line modification, and Product line featuring. Product line length strategy means adding new products to the existing product lines.

Detailed explanation-5: -A product mix strategy is a marketing strategy that analyzes the company’s existing products and allocates resources and efforts on product lines and individual products to best promote them to a specific market or audience and in this way to maximize the company’s growth and market share.