MGMA01H3 Chapter 11: Study Notes for Chapter 11
14 Dec 2010
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The assortment of product lines and individual offerings available from a company. A single product within a product line. A situation where one product takes sales from another offering in a product line. The development of individual offerings that appeal to different market segments but are closely related to the existing product line. A cheap way of increasing sales revenue at minimal risk. Firms place limitations on their growth potential if they focus only on a single product firms often introduce new products to offset seasonal variations in the sales of their current products. By spreading costs of operation over a series of products, average costs of all products is reduced! Advertising costs overall from an intermediary if the quantity of products is larger. Expertise of all the firm"s personnel can be applied more widely to a line or products instead of just one.
