Module 2

38問 • 1年前

問題一覧

• It is the particular good that company sells. • It can be defined as an item that can be offered to the market which has the ability to satisfy the needs and wants.

Product

• It refers to decisions relating to the addition or deletion or product(s) from existing product lines.

Product Line Decisions

It involves adding a new product in the existing product line to face competition and increase the shelf life and customer base

Line Filling Decisions

It involves removing an unprofitable product from the existing product line to avoid losses and increase average profits.

Line Pruning Decisions

• It is various varieties offered within product line, which are similar in one or other ways. Such varieties are based on quality, size, color, capacity, price, model, performance, and so on.

Product Item

• It is a range of similar products or services that are introduced and sold by the same company, with different features and different prices.

Product Line

is a part of the product strategy to determine whether an organization will have a single product or more than one product. In other words, the product line is the products of a company that are closely related to each other.

Product Line

used to refer to a set of all the products offered for sale by a particular company.

Product Mix

• it is referred as "Product Assortment or Product Portfolio"

Product Mix

is a total number of product lines or services that a company offered that consumer tend to use together or think as of similar products.

Product Mix

The 4 dimensions of product mix

• Product width • Product length • Product depth • Product consistency

• Also known as breadth. • How many product lines that the company carriers. It refers to the number of product lines that a company offers to sell.

Product Width

• Total number of items in the mix. It is the total of products produces in a product line or it is those different products that the company provide to its customers.

Product Length

• How many variants are offered of each product in the line. This means that, there are number of variation or varieties within a product line, it’s either flavor, sizes, taste, etc.

Product Depth

• How closely products relate to each other in terms of production, requirements, distribution channel, or some other way. This means how relevant the product to each other or how close relationship between different product lines.

Product Consistency

Factors Affecting Product Mix

1. Changes in Market Demand 2. Cost of Production 3. Quality of Production 4. Advertising and Distribution Costs 5. Competitors 6. Company 7. Changing consumer needs and demand 8. Financial

• An increase or decrease in the desire and ability of consumers to purchase a product at a given price.

Changes in Market Demand

• Refer to all the expenses incurred in the process of creating and delivering a product or service.

Cost of Production

• Refers to how well a product satisfies customer needs, serves its purpose and meets industry standards.

Quality of Production

refers to the deliberate planning and management of a company’s range of products or services to meet the needs and preferences of its target market effectively. It involves decisions regarding the types, variations, and positioning of products within the portfolio.

Product Mix Strategy

• This strategy involves adding new products to the existing mix to broaden the company’s offerings and appeal to a wider range of customers.

Expansion of Product Mix

involves reducing the number of products in the mix, focusing on core offerings or eliminating underperforming products to streamline operations and improve efficiency.

Contraction of Product Mix

• Modifying existing products to better align with changing consumer preferences or technological advancements can enhance competitiveness and market relevance.

Alteration of existing products

involves strategically placing products within the mix to target specific market segments or cater to distinct consumer needs.

Positioning the products

involves introducing higher-priced, premium products to capture additional revenue from affluent customers, while trading down involves offering lower-priced alternatives to attract budget-conscious consumers.

Trading up and down

Involves making a company’s products or services distinct from those of competitors through unique features, branding, or attributes.

Product Differentiation

Involves dividing the overall market into smaller, homogeneous groups of consumers with similar characteristics, needs, or behaviors.

Market Segmentation

• It occurs when a business develops a new product or expands into a new market.

Diversification

When is diversification a good idea?

Market Saturation Risk Management Increased Competitiveness Improved Stability

When everyone has already bought or uses a certain thing, diversifying can help a business reach new customer.

Market Saturation

By diversifying, a business can spread its investments and reduce the impact of risks.

Risk Management

Offering more things to attract more customers and beat the competitors.

Increased Competitiveness

Diversifying can help stabilize a business by making sure that your business does not rely too much on just one thing.

Improved Stability

Types of Business Diversification

Product Diversification Market Diversification Industry Diversification Service Diversification Mergers & Acquisitions Joint Ventures Diversifying into new Geographic Regions

It means there are commonalities between existing products/services and new ones in development.

Related Diversification

• Unrelated diversification means adding new products or services that are unrelated or dissimilar to your existing ones.

Unrelated Diversification

• It is a strategy where a company expands its operations by acquiring or developing capabilities to produce inputs or raw materials that were previously purchased from external suppliers.

Backward Integration

• It is a business strategy in which a corporation expands its operations to include direct supply chain distribution. Forward integration is informally known as "cutting out the middleman."

Forward Integration

Module 6 UTS

Angel Holivelle Carasco · 32問 · 1年前

Module 6 UTS