Answer the following:
1). What are some reasons why a firm might determine that it should expand a product line?
2). What are some reasons for contracting a product line?
3). Why do many firms have a product mix strategy?© BrainMass Inc. brainmass.com October 10, 2019, 3:12 am ad1c9bdddf
Please refer to the attached file for the response.
PRODUCT LINES AND PRODUCT MIX STRATEGY
Reasons why a firm might determine that it should expand a product line
a) To take advantage an established existing product line.
If the existing product line has been established or has positioned itself in the minds of the target and potential buyers, expanding or adding more items in the product line would not be difficult. The impression that the buyers have on the existing items in the product line may be carried over to the items that will be added. This will result to a lesser cost of marketing efforts.
b) To fill up added needs of target buyers.
Buyers have various needs that may not necessarily be totally filled up by the company's existing product lines. Hence to maintain such buyer and to get more revenues from him, additional items may be added in the existing product line.
c) To cater to additional target buyers
Existing items in the company's product line may have been ...
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