theme 2.2

What three aspects does the design mix include?

Function

Aesthetics

Cost

What are the phases of the product life cycle?

Introduction

Growth

Maturity

Decline

What is an extension strategy?

A methods used by businesses to keep a products demand up and stop it from reaching the decline phase of the product life cycle.

Give advantages of an extension strategy

More sales

Lower costs : no new product developed

Business remains competitive

Better brand awareness

Disadvantages of an extension strategy

High costs : marketing campaigns or redesigns

Lower profits

Brand damage : may be a poorly received update

Wasted effort

What is the importance to a business of differentiating a product/ service?

Creating a difference between competitors and the business can help the business to gain a competitive advantage.