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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Changes such as the introduction of a superior competitor, shifting consumer preferences, or economic downturns can reduce demand, pushing a product from maturity into decline. The firm should respond by:
- Harvesting: Reduce marketing spend, streamline production, and maximise cash flow while the product still generates profit.
- Re‑positioning: Identify a niche market or new use for the product and adjust the marketing mix accordingly.
- Diversification: Invest in developing new products or services to replace the declining offering, using insights gained from the mature market.
Choosing the appropriate response depends on the product’s profitability, brand strength, and the firm’s overall strategic objectives.