Inventory and Product Life Flashcards
The reason “Product is King” is why?
Without a good product, you will die a slow business death
Why is it important to understand the difference between generic and specific product needs?
Specific product needs enable you to promote your highest-end solutions to those needs. Generic needs will not sell those benefits.
Give three reasons why product mix is important.
1.) You want to provide everything your client could need or want.
2.) You want to cater to the needs and desires of your community’s demographic.
3.) You want to establish your market niche by your product mix.
What is meant by a product portfolio?
A group of closely related products
After development, each and every product goes through four different life cycles. What are they? Describe each.
1.) Introduction - The product is introduced.
2.) Growth - The product begins to gain traction.
3.) Maturity - The product is at its zenith. Unsuccessful products drop out.
4.) Decline - The product is past its prime and needs to be phased out.
Discuss “cash cow,” “problem child,” and “dog.”
1.) Cash cow - the top sellers. Reorder them as soon as they sell.
2.) Problem child - a former cash cow or product with promise that isn’t selling as well as one would think.
3.) Dog - a product that offers no profit. Get rid of it ASAP.
