Question

1) Explain cannibalization. How does a line extension strategy increase the risk of cannibalization?

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2) How can marketers use elements of the marketing mix to improve product quality?

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3) Why is successful product management increasingly important as technology moves forward and the marketplace becomes more globalized?

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Answer 1

1. Cannibalisation is a phenomenon of a decrease in the volume of revenue of sales for market share of one product because new products in the market through the same producer.

Line extension strategy increases the risk of cannibalization because it is in line extension strategy that the producer introduces a new product or introduces an alteration or change in the original product, which causes a decrease in the original product's sales. After, the consumer starts consuming new products instead of buying the original product. As a result, the sales of the previous product starts declining.

2. Marketers can use the marketing mix elements to improve the product quality by focusing their research, development, and design of products on quality improvement, pricing the product accordingly, trying to reach the customer in an improved manner through better physical distribution, and performing the promotion activities subsequently.

3. successful product management is increasingly important as the technology moves forward and the marketplace becomes more globalized because improved technology and globalization have given consumers more variety to choose from, because of increased competition in the market.

It is essential to focus on product management because the product management will help the producer improve the product timely, and by the needs and wants of the customers, because without it, the producer will not be able to survive and flourish in this dynamic competitive environment.