1. Define the term product mix and describe at least two strategies that companies may use to manage their product mix.
2. Describe the stages of the product life cycle.
3. Describe the purpose and common uses of a SWOT analysis.
4. 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?
5. Explain the four components of a product’s utility.
1. Product mix refers to the combination of products or product lines that a company offers to its customers. Two strategies that companies may use to manage their product mix are:
- Product line extension: This strategy involves adding new products to an existing product line in order to appeal to a broader range of customers or cater to different needs within the same market segment.
- Product line pruning: This strategy involves removing certain products from a product line in order to streamline operations, reduce costs, and focus resources on the most profitable products in the portfolio.
2. The stages of the product life cycle are:
- Introduction: This stage is characterized by the launch of a new product into the market. Sales are typically low, and companies focus on building awareness and generating demand among early adopters.
- Growth: In this stage, sales and market share start to increase as more customers become aware of the product and adopt it. Competitors may start to enter the market, leading to increased competition.
- Maturity: Sales peak in the maturity stage as the product reaches its maximum market penetration. Competition is fierce, and companies may focus on differentiating their product through marketing and pricing strategies.
- Decline: Sales start to decline in the decline stage as customer preferences change, new technologies emerge, or the product becomes obsolete. Companies may choose to phase out the product or try to extend its life through product improvements or marketing efforts.
3. A SWOT analysis is a strategic planning tool that helps organizations identify their strengths, weaknesses, opportunities, and threats. The purpose of a SWOT analysis is to provide a comprehensive overview of the internal and external factors that can impact the organization's performance and decision-making. Common uses of a SWOT analysis include developing strategies, identifying areas for improvement, and evaluating potential risks.
4. The goal of product planning is to develop and bring to market products that meet customer needs and achieve organizational objectives. Typical product planning activities include conducting market research, identifying customer preferences, setting product goals and targets, and developing marketing strategies. Operational needs such as the size of staff, distribution channels, and production capabilities can impact decisions about products and services by influencing factors such as product design, pricing, and distribution strategy.
5. The four components of a product's utility are:
- Form utility: The product's physical appearance, design, and features that provide value to customers.
- Time utility: The availability of the product at the right time to meet customer needs.
- Place utility: The convenience and accessibility of the product for customers.
- Possession utility: The ease with which customers can acquire and use the product.