Question

1) When GK, a company producing razors and shaving accessories for men, asks supermarkets to give its new razors shelf space and special displays, it is using a

a) pull strategy.

b) positioning strategy.

c) pricefixing approach.

d) push strategy.

e) publicity campaign.

2) Which of the following is true regarding a product's progression through the product life cycle?

a) The product stages always go one way, and a product's progression through the stages cannot be reversed.

b) Some products that have moved to the maturity stage or to the decline stage can still rebound through redesign or new uses for the product.

c) Even when products start to decline and new products are introduced to take their place, it can be detrimental to a company's business to phase out any of its products.

d) The only stage in which the product profits is the introductory stage.

e) It is not unusual for technology products to go slowly through the life cycle because these products maintain traction longer than other types of products.

3) Martin's Cleaning Supplies Company has an idea for a cleaner that is universal and can clean any surface type. This could simplify the cleaning process for homeowners as well as janitors and other professional cleaners. The most important question this company should consider when deciding whether to develop this product, in terms of business analysis, is

a) will enough customers want to replace their existing cleaning supplies with this product?

b) how will the product affect the firm's sales, costs, and profits?

c) does this product contain any ingredients that can harm the environment or customers?

d) are there any uses for this product in other industries?

e) can the firm afford to produce this new product?

Answer 1

1) Correct option is d) push strategy.

When GK, a company producing razors and shaving accessories for men, asks supermarkets to give its new razors shelf space and special displays, it is using a push strategy. Push strategy implies that the marketer attempts to push their products at customers. When a supermarket gives its new razors shelf space and special displays, then in exchange for this increased visibility, it receives special sales incentives from the company. A company usually practices such strategy when it launches a new product in the market.

2) Correct option is b) Some products that have moved to the maturity stage or to the decline stage can still rebound through redesign or new uses for the product.

In maturity or decline stage even, their may be opportunities for manufacturers to continue making profit through redesigning their product or informing about the new uses of their product to the customers.

3) Correct option is b) how will the product affect the firm's sales, costs, and profits?

The most important question this company should consider when deciding whether to develop this product, in terms of business analysis, is how will the product affect the firm's sales, costs, and profits? Business analysis helps to determine the costs involved in new product development & also helps to forecast the profits from the product in future. Business analysis helps to avoid unnecessary costs & also, in the elimination of inappropriate ideas.