2.2.1 Marketing Products & Pricing

Lucozade, originally a product for the sick, rebranded itself as an energy and sports drink. The most likely extension strategy used was:

• Changing the recipe of the drink
• Lowering the price
• Finding new uses for the product
• Raising the price

When developing a new product, a business will consider how the product looks and feels. This would be classed as its:

• Function
• Aesthetics
• Cost
• Design mix

At which stage of the product life cycle is a business most likely to use an extension strategy?

• Introduction
• Growth
• Maturity
• Decline

At which stage of the product life cycle are product sales most likely to be at their highest?

• Introduction
• Growth
• Maturity
• Decline

The product life cycle measures the:

• Price of a product over time
• Cost of a product over time
• Profit of a product over time
• Sales of a product over time

A product at the introduction stage of the product life cycle is most likely to need:

• Low promotional spend
• No promotional spend
• High promotional spend
• Reduced promotional spend

At which stage of the product life cycle is customer awareness likely to significantly increase and sales rise steeply?

• Introduction
• Growth
• Maturity
• Decline

When a business develops a product that is unique to rival products, it is best known as:

• Diversification
• An extension strategy
• Product differentiation
• Product portfolio

Which of the following statements best describes the term aesthetics?

• Seeking to minimise costs wherever possible
• How well the product works for the customer
• Actions to prevent a product’s sales declining rapidly
• How the product appeals to the senses of a customer

A well-known brand of breakfast cereal uses promotion to encourage its existing consumers to eat its product at breakfast, dinner and tea. This is an example of which of the following extension strategies?

• Adding new features to the product
• Encouraging use on more occasions
• Changing the appearance of the product
• Changing the price