Question

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called

a) business analysis.
b) immediate drop.
c) screening.
d) phase out.
e) runout.

Answer 1

The method of deleting a product line by letting it decline without changing the current marketing strategy is known as a 'phase out'. It's a way for companies to minimize losses and efficiently reallocate resources.

Step-by-step explanation:

When marketers of an ice cream brand decide to let their product decline without changing their current marketing strategy, leading to its eventual removal from the market, this method is known as a phase out. The phase out is a strategic approach where a product is allowed to gradually exit the market. This lets the product continue to be sold without additional marketing investment until it naturally falls out of favor, thus minimizing losses without disrupting other product lines or brand image.

Exiting the market is a difficult decision, but it is an essential part of the business lifecycle. In the case of the particular ice cream bars, by not adjusting the marketing and simply letting the product run its course, the company is planning to mitigate the trees' losses and allocate resources more efficiently.