Business – 3.3 The marketing mix – Product portfolio analysis | e-Consult
3.3 The marketing mix – Product portfolio analysis (1 questions)
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- Product Modification (e.g., adding new features or redesign)
- Potential benefit: Revitalises consumer interest and can create a new growth phase.
- Risk: Additional development costs may not be recovered if the market is already shrinking; the modification may not be perceived as sufficiently different.
- Market Re‑segmentation (targeting a new demographic or geographic market)
- Potential benefit: Opens up untapped demand, extending the product’s relevance.
- Risk: The new segment may have different preferences, requiring further adaptation; mis‑reading the segment can lead to wasted resources.
- Price Reduction or Promotional Pricing
- Potential benefit: Stimulates short‑term sales and clears inventory.
- Risk: Can erode brand equity and profit margins; may attract price‑sensitive customers who abandon the product once prices rise again.