What are the benefits of having a wide range of products?

Having a wide range of product lines increases the chances of satisfying more customers and can improve productivity. However, each line needs its own development, marketing and support, and this can drive up costs.

What benefit does adding new product lines bring?

Product diversification helps you retain your current customers by offering them new, exciting parts of your brand. This not only increases your revenue, but it also decreases costs. Keep in mind that customer retention is significantly cheaper than customer acquisition.

What are four reasons for expanding a product line?

There are many reasons to expand a product line, most notably to grow your revenues and market share.

  • What Is Product Expansion? There are several types of product line expansion:
  • Boosts Market Share.
  • Increases Customer Loyalty.
  • Minimizes Risk.

How does product range affect a business?

When a company develops a strong core product range, the product range allows the company to focus on those product lines while still offering enough variety in size, color, taste or functionality to appeal to a wide range of potential customers.

What is a product expansion strategy?

Product expansion is when companies grow their businesses by adopting a market expansion strategy. This is when a company will attempt to reach out to other markets after capturing the interest of their target market.

How do you expand a product?

5 Strategies to Expand Your Products & Services

  1. Analyze customer data. While it may be tempting to leap in head first and try to do anything to increase sales, first, take the time to survey your customers.
  2. New products & services.
  3. Find new markets.
  4. Expand distribution channels.
  5. Target existing customers.

Why would a company use a positioning product mix strategy?

Describe advantages of positioning product-mix strategies. Creating an identity of a product helps find a place for the product in the marketplace while strongly identifying with a specific target market and possibly creating brand loyalty.

Why would a company use a contraction product mix strategy?

Adding product items or product lines increases costs of inventory, marketing, transportation, storage, and personnel. Why would a company use a contraction product-mix strategy? It has lost its appeal to customers. It is no longer appropriate to the company’s goals.

Why would a business use a contraction product mix strategy?

How do you increase product range?

5 ways to expand your product range for free or little cost

  1. Co-promotion with another retailer.
  2. Increase your product selection with Photoshop.
  3. Survey your customers for products they want.
  4. Test-market a non-existent product.
  5. Make slight changes to your existing product.

Why is market expansion important to business?

By expanding to new markets, companies drive their production and thus lower their cost per unit. This occurs because costs—both fixed and variable—are spread out over a wider number of goods and services. With economies of scale, the larger the business, the greater the cost savings.