1 Product line extension occurs when a firm’s management decides to add products to an existing product line. Product line extensions can often be described as an upward stretch, a downward stretch, or a two-way stretch. Discuss the difference between each of the product line extension techniques.
management 231 marketing
1 Product line extension occurs when a firm’s management decides to add products to an existing product line. Product line extensions can often be described as an upward stretch, a downward stretch, or a two-way stretch. Discuss the difference between each of the product line extension techniques.
2 Why do some new products succeed, and others fail?
3 Read the Case study
TeleBrands is at the forefront of shaping the fast-paced TV-brands market. Its track record speaks for itself. TeleBrands has grown from R36 million in annual sales in 1987, to selling over R900 million annually in 2007. The world leader in TV-branded products, TeleBrands supplies major retail accounts across the entire retail distribution spectrum.
TeleBrands is completely integrated, directly controlling every aspect of its business including manufacturing, marketing, and retail distribution. With full ownership of products and complete control over manufacturing, TeleBrands is able to offer the highest quality goods at the best possible price to ensure complete customer satisfaction.
TeleBrands works side by side with its retail customers to create a successful product and merchandising programmes. TeleBrands’ philosophy is to share the risk with the retail partner when the retailer takes on a new product. TeleBrands helps retailers manage their weekly sales and does whatever is necessary to drive their business with additional joint marketing and merchandising efforts.
- Refer to the case study. What do TeleBrands, the retailers it serves, and television buyers constitute?
- Which important need(s) does TeleBrands fulfill by marketing directly to millions of consumers and handling order taking and shipping? Mention and define that need(s)?
- Refer to the case study. Mention and explain What is the best description of the type of
marketing channel for consumer products that are discussed above?
- Refer to the case study. TeleBrands has had to set up another channel of distribution to handle returned merchandise. What is this channel called and explain it?
- Refer to the case study. TeleBrands sells to just about any retailer willing to stock the television product. What marketing strategy does this exemplify?
Step by step
Solved in 8 steps
