Define the term product mix and describe at least two strategies that companies may use to manage their product mix.
Describe the stages of the product life cycle.
Describe the purpose and common uses of a SWOT analysis.
Explain the goal of product planning and typical product planning activities. What impact do operation needs, such as size of staff, distribution, etc. have on making decisions about products and services?
Explain the four components of a product’s utility.
Product mix refers to the combination of products offered by a company to its customers. It includes all the products within a company's portfolio and how they are grouped together. Two strategies that companies may use to manage their product mix are:
1. Product line extension: This strategy involves introducing new products within an existing product line. For example, a company that sells smartphones may introduce a new model with additional features or a different design to attract a wider range of customers.
2. Product line pruning: This strategy involves removing underperforming products from a company's product mix to streamline its offerings and focus on the most profitable products. This can help improve overall efficiency and profitability.
The stages of the product life cycle are introduction, growth, maturity, and decline. During the introduction stage, a new product is launched into the market and sales are typically low. In the growth stage, sales start to increase as more customers become aware of the product. The maturity stage is characterized by stable sales, and competition may intensify. Finally, in the decline stage, sales begin to decrease as newer products or technologies enter the market.
A SWOT analysis is a strategic planning tool that helps companies identify their strengths, weaknesses, opportunities, and threats. It is commonly used to assess the internal and external factors that may impact a company's ability to achieve its objectives. The purpose of a SWOT analysis is to help companies develop strategies that leverage their strengths, address their weaknesses, capitalize on opportunities, and mitigate threats.
Product planning refers to the process of developing new products or improving existing products to meet the needs of customers and achieve business objectives. Typical product planning activities include market research, idea generation, concept development, product design, testing, and launch. Operational needs, such as the size of staff, distribution capabilities, and resources available, can impact decisions about products and services by influencing the feasibility and cost-effectiveness of introducing or maintaining certain products.
The four components of a product's utility are form utility (the physical appearance and design of a product), time utility (making a product available when it is needed), place utility (making a product available where it is needed), and possession utility (making a product easy to acquire and use). These components work together to create value for customers and differentiate a product from competitors.