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Marketing Management

Quick questions on The product life cycle and portfolio analysis explained: H2 Management of Business

6short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is the product life cycle?
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Most products pass through stages of sales over time:
What are extension strategies?
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To prolong the profitable maturity phase and delay decline, firms use extension strategies: reformulating or improving the product, new packaging, finding new markets or segments, repositioning, fresh promotion or a relaunch, and pricing changes. Extension is cheaper than developing a new product and works well when decline is due to staleness rather than a permanent shift in tastes.
What is product portfolio analysis?
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The Boston Matrix classifies a firm's products by market share and market growth:
What is q1?
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State the four stages of the product life cycle in order. [2 marks]
What is q2?
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Explain one extension strategy a firm could use to prolong a product's maturity. [4 marks]
What is q3?
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Analyse why a firm should not rely on the Boston Matrix alone when deciding which products to invest in. [6 marks]

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