Page 176 - principles of tourism marketing-1 (1)

Understanding the product mix of a company is essential to study and

analyze its brand image. A company with more product width and depth

is seen as more diversified. More diversification means less risk as the

company lowers its dependence on one product or product line.

Usually, if a company expands the product width, it gives it the ability to

diversify risk and meet different consumer demands. On the other hand, if

a company expands depth, it allows it to meet the needs of the present

customers better.

Product Life Cycle:

The term product life cycle refers to the length of time a product is

introduced to consumers into the market until it's removed from the

shelves. The life cycle of a product is broken into four stages—

introduction, growth, maturity, and decline. This concept is used by

management and by marketing professionals as a factor in deciding when

it is appropriate to increase advertising, reduce prices, expand to new

markets, or redesign packaging. The process of strategizing ways to

continuously support and maintain a product is called product life cycle

management.

A product life cycle is the amount of time a product goes from being

introduced into the market until it's taken off the shelves.

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