Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes?
A) sales outsourcing
B) product modification
C) industry repositioning
D) product harvesting
E) marketing mix modification

Question

Quizplus · Accepted Answer

The strategy used by Electronics International for SweetTunes is product harvesting, which involves reducing marketing expenditures and letting the product decline in sales while still generating enough revenue to be profitable. This strategy is appropriate for products that are nearing the end of their life cycle or that have been overtaken by newer technology or competition.

Electronics International Has Experienced a Significant Decline in Sales for SweetTunes