MANAGEMENT

Detailed explanation-1: -What is a Product Mix Strategy? A successful product mix strategy enables a company to focus efforts and resources on the products and product lines within its offerings that have the greatest potential for growth, market share, and revenue.

Detailed explanation-2: -Which of the following is a disadvantage associated with the addition of a lower prices product or line to a company’s product mix: The company’s reputation may be damaged.

Detailed explanation-3: -Which of the following is a disadvantage associated with the addition of a higher priced product or line to a company’s product mix? It increases market risk.

Detailed explanation-4: -Trading up: Adding a higher-priced product to a line to attract a higher-income market and improve the sales of existing lower-priced products. Trading down: Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.