Question: Why Is Product Mix Important?

Why is a product important?

The first and foremost important reason for any new products is to offer new value to the customer.

Without this, there is no any other reason for them to invest their money for the new products or services.

However, if the new products or service offers exceptional values, then customers will stick to it..

Why do businesses need to manage their product mix?

Focusing on the Business 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.

What are the elements of product mix?

The four dimensions to a company’s product mix include width, length, depth and consistency.Width: Number of Product Lines. … Length: Total Products. … Depth: Product Variations. … Consistency is Relationship. … Product Market Mix Strategy.

How do you define product?

Definition: A product is the item offered for sale. A product can be a service or an item. Every product is made at a cost and each is sold at a price. … The price that can be charged depends on the market, the quality, the marketing and the segment that is targeted.

What are the 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 are the benefits of product knowledge?

Here are some of the key benefits of increasing product knowledge among your sales associates.Increased Confidence. … Authoritative Answers. … Effective Communication. … Enhanced Upselling and Cross-selling. … Creating the Ideal Customer Experience.

What are the 5 stages of product development?

Five phases guide the new product development process for small businesses: idea generation, screening, concept development, product development and, finally, commercialization.

What is product give example?

A tangible product is a physical object that can be perceived by touch such as a building, vehicle, or gadget. Most goods are tangible products. For example, a soccer ball is a tangible product. … An intangible product is a product that can only be perceived indirectly such as an insurance policy.

What is the concept of product mix?

Product mix, also known as product assortment or product portfolio, refers to the complete set of products and/or services offered by a firm. A product mix consists of product lines, which are associated items that consumers.

What can product knowledge cover?

Introduction: Product knowledge is the in depth understanding of what your company sells. This includes an understanding of the facts and figures, the benefits, your competitors, your prospects, and the marketplace.

How do you teach product knowledge?

Here are some best practices for product knowledge training.Teach sales professionals to understand their customers’ needs. … Use just-in-time training. … Provide opportunities to practice. … Use microlearning. … Provide product refresher training. … Partner with marketing.

What is the most important part of product development?

New Value for Customers The first and most important reason for any new development is to provide new value to the customer. Without this, there is no reason for them to trade their money for the new device. However, if the product or service offers overwhelming value, then customers will flock to it.

What are the 7 stages in the new product development process?

The seven steps of BAH model are: new product strategy, idea generation, screening and evaluation, business analysis, development, testing, and commercialization.

How do you define product features?

Product features are characteristics of your product that describe its appearance, components, and capabilities. A product feature is a slice of business functionality that has a corresponding benefit or set of benefits for that product’s end user.

What is the importance of product in marketing mix?

Product has a vital role in developing the strategy for the overall marketing mix which includes place, price and promotion. Through a definition of the product features and benefits, the rest of the marketing mix elements are determined and agreed upon.

What is the importance of product development?

Product development skills, therefore, include the ability to conceptualize, design, develop, and then commercialize or market the newly created or rebranded products/services. The sole purpose of doing all this is to increase and maintain the market share of a company by meeting the consumer demands in a better way.

What is product knowledge and why is it important?

Product knowledge is an essential sales skill. Understanding your products’ features allows you to present their benefits accurately and persuasively. Customers respond to enthusiastic sales staff who are passionate about their products and eager to share the benefits with them.

What are the 4 types of product?

Consumer products are defined as products that satisfy a consumer’s wants or needs. There are four types of consumer products, and they are convenience, shopping, specialty, and unsought.