1. Product mix refers to the set of all products and items that a company offers to its customers. Two strategies that companies may use to manage their product mix are product line extension, where new variations or versions of existing products are introduced to cater to different customer segments, and product line pruning, where underperforming or outdated products are removed from the product mix to streamline and focus on more profitable offerings.
2. The stages of the product life cycle include introduction, growth, maturity, and decline. In the introduction stage, the product is launched and sales are low. In the growth stage, sales and market share increase. The maturity stage is characterized by stable sales and intense competition. The decline stage sees a decrease in sales as consumer interest wanes.
3. A SWOT analysis is a strategic planning tool used to identify and analyze an organization's strengths, weaknesses, opportunities, and threats. The purpose of a SWOT analysis is to help companies understand their internal capabilities and external environment in order to develop effective strategies. Common uses of a SWOT analysis include strategic planning, decision-making, and identifying potential risks.
4. The goal of product planning is to develop and introduce new products or services to meet customer needs and achieve business objectives. Typical product planning activities include market research, concept development, testing, and launch planning. Operational needs, such as the size of staff, distribution capabilities, and resources, can impact product planning decisions by influencing the feasibility and overall success of introducing new products or services.
5. The four components of a product's utility are form utility (shape, design), time utility (availability when needed), place utility (availability where needed), and possession utility (ease of purchase and ownership). These components contribute to the overall value and satisfaction that a product provides to consumers. Form utility refers to how well the product meets the customer's needs in terms of design and functionality, while time utility ensures product availability when customers need it. Place utility ensures that the product is available at convenient locations, and possession utility makes it easy for customers to purchase, own, and use the product.
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
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