Why Are Product Mix Decisions So Important?

How can I improve my product portfolio?

Effective product portfolio management initiatives will help:Improve competitive positioning.Maximize product investments.Identify strong and weak products to clarify resource allocation.Ensure that product investments align with business objectives.Prioritize product focus.Improve communication and collaboration..

What are product mix decisions?

The range of products offered by a firm is a critical strategic decision that will determine how the firm (and their brands) compete in the marketplace and the overall positioning of the brand.

What are the important product mix and product line decisions?

Four important dimensions of a product mix can be identified. These are: width, length, depth, and consistency. The first of the product mix decisions refers to the product mix width. The width is all about the number of different product lines the company carries.

Why do businesses need to manage their product mix?

Concentrating on the product mix help organization to focus on the primary business. In the process of widening the core business, most companies increase the product lines which divert the attention from the primary business.

Why the product is the most important part of the marketing mix?

The product is the most important element of the marketing mix. Developing a total marketing programme involve the marketing manager arming himself with the 4p’s of the marketing mix, i.e. product, place (distribution), pricing, and promotion. … The aim of the product is to satisfy the need and desire of the customer.

What is the difference between product mix and product line?

Product Mix. Both manufacturers and retailers must decide on width and depth of a product mix. This is done with strategies that determine a target market and an image. A product line is a group of closely related products manufactured and/or sold by a business.

What is the best explanation of a product line?

What Is a Product Line? A product line is a group of related products all marketed under a single brand name that is sold by the same company. Companies sell multiple product lines under their various brand names, seeking to distinguish them from each other for better usability for consumers.

How can you improve a product?

Defining and Improving Product QualityUnderstand What Quality Is. … Build a Solid Product Strategy. … Implement a Quality Management System (QMS) … Make Quality a Part of Your Company Culture. … Perform Product and Market Testing. … Always Strive for Quality.

Why and how product mix is changed?

Market Demand: To absorb changes in demand of the products, marketer changes its product mix. Demand changes due to a large number of factors, such as technology, demographic variables, competitions, development of new products, change in fashion, custom, attributes, and many other such reasons.

What are the four product mix strategies?

These are called the 4P’s and are product, price, promotion, and place. These four components help determine a clear and effective strategy to bring a product to market. Each element is crucial in its own right and needs to be given due focus.

What is product mix and examples?

Product mix, also known as product assortment, refers to the total number of product lines a company offers to its customers. For example, your company may sell multiple lines of products. … Or your product lines may be vastly different, such as diapers and razors.

What are the factors affecting product mix?

Product Mix: Top 10 Factors Affecting Product MixProfitability: Every business unit tries to maximize its profits. … Objectives and Policy of Company: Company frames its product mix to achieve its objective. … Production Capacity: ADVERTISEMENTS: … Demand: … Production Costs: … Government Rules and Restriction: … Demand Fluctuation: … Competition:More items…

Why is product line important?

A product line is a set of related products which are sold to consumers under a sole name or brand. Product lines are important for three primary reasons: familiarity, product and brand diversification through market penetration, and created value.

Why do products have to be deleted from a product mix?

Deletion of product is important for the firm due to the fact if a product is not selling, it is wasting the firm’s money, resources, which could be used to invest in new products. Question 6: Why must firms introduce new products? – By introducing a new product helps them in competing with existing competition.

Why is product management important?

Product managers are responsible for guiding the success of a product and leading the cross-functional team that is responsible for improving it. It is an important organizational role — especially in technology companies — that sets the strategy, roadmap, and feature definition for a product or product line.

What are some risks of adding a new product?

Risks Associated with Product DevelopmentRisk of major delays and economic costs due to belief that high utilization of resources improves performance. … Increasing costs as a result of processing work in large batches. … Risk of losing opportunities by “sticking” to a single development plan. … Risk of starting a product development task too soon.More items…

How do you manage product mix?

Building and managing a profitable product mix can give a company a large market share and create multiple income sources.Coordinate With the Production Department. … Seek Consistency for Branding Purposes. … Go for Depth. … Assign Mangers to Different Lines. … Know Your Limits.

What are the 3 product mix strategies?

The major alternative product mix strategies (given by William Stanton and others) have been discussed briefly as under:Expansion of Product Mix: … Contraction of Product Mix: … Deepening Product Mix Depth: … Alteration or Changes in Existing Products: … Developing New Uses of Existing Products: … Trading Up: … Trading Down:More items…

What is product line strategies?

A product line strategy is a coherent approach to advance related products. It guides managers to improve the performance of their products and services, and to avoid disjointed actions and investments. A good strategy will respond to change, whether major disruptions or incremental.

Which of the 4 P’s is most important?

Marketing has 4Ps too: Product, Place, Promotion and Price. The most important P (arguably) is Price. … Not just in service marketing but in all business to business marketing. In consumer marketing the customer relationship tends to be with a brand.

How do you manage a product?

Product management is an interdisciplinary role that reaches across teams to plan, design, and continuously bring better products to market. The role evolved out of a set of responsibilities that traditionally fell to lead developers and engineers: scoping out user problems and making critical product decisions.