The online reputation management company needs to know about the product lines and product mix since company have an ongoing assessment to ensure growth, to satisfy changing consumer needs and wants and to adjust to competitors’ offerings. The product line is a group of related products that share by physical similarities or are targeted toward a similar market and the product mix is the assortment of product lines and individual goods and services that a firm offers to consumers and business users. It is always important for companies to manage their product mix and they might introduce new products and product lines or extend their current offerings. The product life cycle is a tool that marketers use to help guide marketing strategies and it helps marketers anticipate developments. The product life cycle involves the four basic stages in the development of a successful product including the introduction, growth, maturity and decline. All of the sales and the profits of certain products go through a predictable pattern and the product life cycle also provides cost, advertising expenditures, and competition strategies.
During the introduction stage, losses are common due to relatively low sales and high costs of promotions, establishing distribution channels, and training the sales force about the new product’s advantages. Expenditures are necessary for later profit and during the growth stage, competitors enter the field with similar offerings, and price competition appears. During the maturity stage, competition intensifies, increasing the availability of the product. Any firm is able to concentrate on capturing competitors’ customers, often dropping prices to further the appeal. Firms are also able to promote mature products aggressively to protect their market share and to distinguish their products from their competitors. During the decline stage, the sales start to fall and the profits decline and they may become losses as further price-cutting occurs in the reduced overall market for the item. The reason why firms are in the decline stage is due to the fact that there is another product innovation or a shift in consumer preferences.