In marketing, what does the term 'extension strategy' refer to?

The term 'extension strategy' in marketing specifically refers to methods employed to prolong a product's relevance in the market. This can involve various tactics aimed at invigorating interest or sales for a product that may be experiencing a decline. For instance, this could include introducing new features, expanding into new markets, or even revitalizing the product with updated marketing campaigns.

By utilizing an extension strategy, businesses aim to extend the life cycle of a product, allowing it to continue generating revenue and maintaining its market presence. This is crucial as it helps businesses avoid the pitfalls of declining sales and can lead to increased brand loyalty and consumer engagement.

While other strategies may involve manipulating pricing or differentiating a brand, they do not encompass the broader intent and scope of an extension strategy, which is fundamentally about maintaining and enhancing the relevance of existing products in a competitive landscape.