Which of the following best represents the options a company has when a product is declining?
A)modify the product
B)modify the market
C)modify the marketing mix
D)divesting from the market
E)maintain, harvest, or drop the product

Question

Quizplus · Accepted Answer

When a product is declining, a company has three options, which are maintain, harvest, or drop the product. Maintaining the product means sustaining it for as long as possible with minimum cost. Harvesting the product means reducing costs without further investment, thereby maximizing profitability. Lastly, dropping the product involves entirely discontinuing it, releasing any resources devoted to it, and reallocating them elsewhere. While modifying the product or the market may be potential options, they are not the most effective solutions when a product is in decline, as the market may have already been saturated or the product may have reached its limits in terms of innovation. Modifying the marketing mix can be an appropriate strategy but only when the company is willing to invest in promoting it effectively. Divesting from the market is not a solution either, as it may result in the company abandoning its customer base and losing out on potential sales.

Which of the Following Best Represents the Options a Company