Line extensions. The development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs. Line extensions are more common than new products because they
are a less expensive, lower-risk alternative for increasing
sales.
What is the difference between brand extension and line extension quizlet?
What is the difference between a line extension and a brand extension? A
line extension uses a current brand name to enter a new market segment in its product class
, whereas a brand extension uses a current brand name to enter a completely different product class.
What is the key difference between a product modification and a line extension?
A line extension is the development of a product closely related to one or more products in the existing line but designed specifically to meet different customer needs. Product modification is the
changing
of one or more characteristics of a product.
Which of the following is a common cause of new product failure?
According to Robert Cooper [1], the major causes for new product failure are:
inadequate market analysis, product defects
, lack of effective marketing effort, higher costs than anticipated and competitive reaction.
Why are line extensions more common than new products?
Why are line extensions more common than new products? a.
They are higher risk and more expensive
. … Modifications to existing products are very easy.
Why do businesses think of line extensions?
By
having a broader range of products within the same product category
, makes it more difficult for competitors to find an obvious gap in the marketplace. It would also have the impact of fragmenting the market and splitting segments into niches.
What are the potential benefits of extending the product line?
Extending your product line has several strategic benefits including
increased profits, customer loyalty, and brand visibility
.
What do you mean by brand extension?
A brand extension is when
a company uses one of its established brand names on a new product or new product category
. It’s sometimes known as brand stretching. … If successful, a brand extension can help a company reach new demographics, expand its customer base, increase sales, and boost overall profit margins.
What is a product extension strategy quizlet?
A product line extension strategy is
an approach to developing new products for your existing customers or for prospects who do not currently buy from you
. Extending a product line involves adding new features to existing products, rather than developing completely new products.
What is a line extension quizlet?
Line extensions.
The development of a product closely related to one or more products in the existing product line
but designed specifically to meet somewhat different customer needs.
What are the three types of product modification?
There are three major ways of product modification, i.e.
quality modifications, functional modifications, and style modifications
.
What are some risks of adding a new product?
- Risk of major delays and economic costs due to belief that high utilization of resources improves performance. …
- Increasing costs as a result of processing work in large batches. …
- Risk of losing opportunities by “sticking” to a single development plan.
Is the modification of an existing product or process?
Product Modification
refers to the improvement of the existing products by making necessary changes in the characteristics, nature, size, packing and colour, etc., of the products so that the changes in demand of consumers may be dealt effectively.
What are the two causes of product failure?
About 30 to 45% of new products fail to deliver any meaningful financial return. This typically happens due to a number of reasons, from
poor product / market fit
, failure to understand customer needs (or fixing a non-existing problem), to a lack of internal capabilities.
What is difference between product line and product mix?
Product Mix
vs
Product Line
A
product mix is
a group of everything a company sells. However, the
product line is
a subset of the
product mix
. A
product line
refers to a unique
product
category or
product
brand a company offers.
How can you prevent product failure?
- Minimum. …
- Viable. …
- Product. …
- Ensuring There Is Sufficient Research into a Market. …
- Combatting False Claims and Preventing Bad Reviews. …
- Making Sure Customers Understand the Product. …
- Know the Value of Your Product. …
- Carry Out a Well-Executed Launch.
