Extension Strategies

• What is an extension strategy?

  Action to extend the life of a product
• What is the goal of an extension strategy?

  To keep selling and profit longer
• Why must firms balance spending on extension strategies and new product development?

  To ensure sustainable growth and profitability
• What are the five types of extension strategies?

  1. Adding new features
  2. Using new packaging
  3. Changing target market
  4. Changing advertising
  5. Lowering prices
• How does adding new features serve as an extension strategy?

  It makes the product more useful and appealing
• What is the effect of using new packaging as an extension strategy?

  It makes the product more eye-catching
• How can combining extension strategies be beneficial for a business?

  It helps target a new market effectively
• What is an example of changing the target market as an extension strategy?

  Promoting in a different age group or country
• How does changing advertising serve as an extension strategy?

  It makes more people aware of the product
• What is the impact of lowering prices as an extension strategy?

  It can attract more customers through offers
• Why is it important for businesses to evaluate combinations of extension strategies?

  To find the most effective approach for longevity