ID# 2035358690 Name: Md.

Nizamul Haque Shakil

Mid-2
EMB-520: Principles of Marketing & Management
EMBA Program
School of Business, NSU
● Answer ALL the questions.
● Don’t cross the word limit while answering the questions.
● Type your answer in the designated place of this answer script.
● Make sure your answer is unique and not copied from any source.
● Please don’t email the answer script; submit it in the Google classroom.

1. A company’s product mix, the set of all products and items a particular seller offers
for sale, is important to the company because it will permit the company to expand its
businesses in many ways and bring the company’s product flexibility. Explain (i) how
many ways business expansion is done using product mix and (ii) how product mix
brings company’s product flexibility and aids company profits. [Max 120 words] [10
marks]

Answer:
(i) Following ways can be used for Business expansion by using product mix:
(a) Length: Increasing the number of products in a specific product line
(b) Width: Extending the variety of product line.
(c) Depth: Bringing variation in a single item by differencing ingredient level
(d) Consistency: adding related product lines in terms of product characteristics, target
market, use, Production & distribution.

(ii) Strategic implementation of product mix basically aims at identifying products which
assure a profitable future for the company. It determines “how many” to produce from
each product for each market where it will be sold, which item to build, maintain,
harvest and how the line is positioned against competitors. Company find a new
optimal product mix and its expected profit analyzing the above answers.

2. Price adjustment is a very difficult job. For taking decision on price adjustments, a
marketer has to consider a range of diverse issues ranging from consumer psychology
to market heterogeneity. (i) Why does a marketer need to adjust his or her prices of
products? (ii) Why is price adjustment decision very complicated? [Please don’t write
different price adjustment approaches] [Max 130 words] [10 marks]

Answer:
(i) While product, place and promotion affect costs, price is the only element that
affects revenues, and thus, a business’s profits. Price can lead to a firm’s survival
or demise. Adjusting the price has a profound impact on the marketing strategy,
and depending on the price elasticity of the product, it will often affect the demand
and sales as well. Both a price that is too high and one that is too low can limit
growth. The wrong price can also negatively influence sales and cash flow.
(ii) Marketers have to adjust price analyzing competitors’ position, customers’
psychology, company’s objective, cost, marketing environment, target segments,
distribution channels, Price-quality inference, others etc. Without changing any
aspect, raising price- may cause inverse effect. Reducing price without reasoning
lead customer to apprehend that, company is not producing quality product! So,
Price adjusting is extremely complicated.