Product line decisions – These are the decisions that the organizations offer the same products for solving the overall range of the same issues that target consumers have. These are the decisions regarding the deletion or addition of products from the current lines of the product (Datta, et al., 2022).
Decisions regarding the product line are given below:
- Product line expansion – The executive of marketing would mainly consider the effective opportunities for expansion of the product line once the product has attained success in the market, adding linked products to the particular line for increasing the targeted market. Though probable innovative offerings could be too different from the real product, most frequently they are not. The line of products could be enlarged by adding further items within the current range. Causes for filling lines of product are:
– Earning additional profit
– Satisfying all mediators
– Using surplus capacity
– Seizing parts of the targeted market that will mainly otherwise be effectively lost to the organization’s competitors.
- Product line repositioning – Product repositioning is the strategy that alters the targeted market for the specified product. The crucial variance between repositioning and expansion of product is that mainly with repositioning and no innovative products are essentially added to the specific line. Three causes are there to adopt the strategy of repositioning and these are:
– If the specific product was inappropriately positioned then the executive of marketing could alter the product for fitting in the market.
– Changes in the demography of consumers and buying preferences and patterns could decrease the desirability of the targeted market.
– The third cause for repositioning happens when the specific product has attained the entire it could in the original segment of the market.
- Product line contradiction – The product line strategy of contraction is followed for reducing the number of products the organization offers for selling purposes. The product that is reserved on that market mainly past its useful drains of life the money of the company and the time of executives from further favourable pursuits (Datta, et al., 2022).
Product mix decisions – These are the decisions in terms of adding the innovative or mitigating the present product from the mix of products, adding the new line of product, lengthening the present line and getting innovative variations of the brand for expanding the business and for increasing the profit margin (Hájek, 2018).
Decisions regarding product mix are:
- Width – The width of the organization of the product mix comprises different lines of products effectively carried by the organization. The product’s width calculates the number of the line of products in the organization.
- Length – It describes the overall number of products in its particular product mix. For instance, if the specific powder of detergent arrives in three types of sizes and two types of formulae then it has a complexity of six.
- Depth – The product mix’s depth describes as the variants numbers that are given for every line of product of the organization. The product mix’s depth is specifically measured by the product’s number given in every line of product.
- Consistency – It means if similarities are there regarding end-utilization, channels of distribution, requirements of production etc. (Hájek, 2018).
The meaning of product life cycle –
This is the period of a product which is counted from the moment it gets introduced in the market to the period when it gets out of the market. There are 4 major steps which are usually in any product’s life cycle and these four stages are as follows, 1 Introduction, 2 Growth, 3 Maturity, and 4 Decline. An organization get more profit benefit at the time of introduction and in the second stage of growth, it gets more number of sale. The product life cycle helps in many ways to a company for example in deciding on the pricing and promotions or even in expansion etc. (Matsumoto, et al., 2017).
All 4 stages of the product life cycle have been described below briefly –
1 Introduction –
- This is the period of any product in which it gets introduced to the market for the first time.
- It is also considered a very crucial stage among all the four stages
- This is a very slow process in comparison to all other stages and slow because the demand is being got created in the market for the product.
- This is the stage in which the profit amount is highest.
- The number of sales is not that much at this point.
2 Growths –
- This is the second phase of the product in which steady growth
- It is observed that this is the phase with rapid growth.
- This is the phase in which a higher number of sales is going on for the product.
- Generally competitors get involved in this point with their product providing more value.
E This is the point at which the best offers and the value-for-money product are being provided to the customer.
3 Maturities –
- This is the third stage in which the product has stopped growth.
- The product started to make steady progress.
- The product shifts towards the slightly decline phase.
- The most profitable phase in which the production gets minimal.
- It has been observed that the sales value gets maxed out at this stage.
- As the competition in the market has grown and provided better offers for the same product.
- No more profit is getting and this is the time at which many companies stop production or provide the same product with less quantity along with a less profit margin.
- In this stage it has been observed that the company’s product starts to lose market share.
- In this stage company generally updates the product and launches it again with better features that offer more value for money to the customers.
- Decrease in the product sale due to the created saturation in the market (Shahmarichatghieh, et al.,2015).
THE B2B business model is business to the business model which is an e-commerce business, there is a relation between the business to business by the mean of exchange in a variety of things such as the product and the services along with the information related to business are also shared between them. A better example to understand is the relationship between wholesalers and online retailers.
B2C is also known as retail e-commerce, it establishes the direct relationship between the business which are available online and the consumer without having any third party in between. One of the most famous examples of the B2C model is amazon as it establishes a direct relationship between the supplier and the consumer without involving any third person which leads to having a direct connection (Hutt & Speh, 2021).
The reason behind the more number of transactions in B2B markets than in B2C markets is because of costlier products and complexity. The buyers in the B2B buyers are not typical consumers so they do not buy stuff for the fun but invest in the technologies that lead to having better customer experience and the enhanced service that could be given to their clients etc.
The reasons behind fewer buyers in the B2B market are as follows –
There are few buyers in the B2B market but it has been observed that the amount of spending which is being done in it is way more than a typical customer can do, and not only that but has a more rigid product although. Some of the disadvantages which lead to fewer buyer in the B2B market is as increased demand from the side customer, along with the customization to have different pricing. The business generally leans towards particular buyers which results in building long-term burying processes in between them. One of the greatest disadvantages of the B2B market is that using digital marketing is way more complex than compared to B2C.
The major categories of business buyers with suitable examples have been explained below –
1 Producer –
They buy the raw material and make a product out of it. They not only include only the manufacturer but also the service providers.
2 Resellers –
This is the group that just directly sells the goods and services as it is that they get and does not alter them at any point in time. The main person who came under it are wholesalers, brokers, and last but not least retailers. One good example of the resellers or the largest group of retailers is Wal-Mart.
3 Governments –
It has been observed that the government is the largest buyer of the product and services, and the authorized store of government has a permit to sell that stuff at the suggested rate of the government.
4 Institutions –
These are the non-profit organizations for example churches and hospitals and much more similar. Getting their price to minimal let them provide the service to a large number of people (Rėklaitis & Pilelienė, 2019).
Datta, D. B., Seal, P., George, S. M., & Roy, S. (2022). Factors Influencing Women’s Buying Decisions while Shopping for Lingerie Products Online. Tekstilec, 65(1). http://www.tekstilec.si/wp-content/uploads/2022/02/10.14502Tekstilec2022.65.2021048.pdf
Hájek, J. (2018). Product Mix Decisions with Respect to TOC and Linear Programming. The 8th International Days of Statistics and Economics,(Online) https://msed. vse. cz/msed_2014/article/384-Hajek-Jiri-paper. pdf, 7. https://msed.vse.cz/msed_2014/article/384-Hajek-Jiri-paper.pdf
Hutt, M. D., & Speh, T. W. (2021). Business marketing management: B2B. South-Western, Cengage Learning. http://dspace.vnbrims.org:13000/jspui/bitstream/123456789/4877/1/Business%20Marketing%20Management%20B2B.pdf
Matsumoto, M., Masui, K., Fukushige, S., & Kondoh, S. (Eds.). (2017). Sustainability through innovation in product life cycle design. Springer Singapore. https://link.springer.com/content/pdf/10.1007/978-981-10-0471-1.pdf
Rėklaitis, K., & Pilelienė, L. (2019). Principle differences between B2B and B2C marketing communication processes. Organizacijø Vadyba: Sisteminiai Tyrimai, (81), 73-86. https://sciendo.com/downloadpdf/journals/mosr/81/1/article-p73.xml
Shahmarichatghieh, M., Tolonen, A., & Haapasalo, H. (2015, May). Product life cycle, technology life cycle and market life cycle; similarities, differences and applications. In Technology, Innovation and Industrial Management Joint International Conference (pp. 1143-1151). https://www.academia.edu/download/50633792/technology_life_cycle.pdf