Business – 3.3 The marketing mix – Product portfolio analysis | e-Consult
3.3 The marketing mix – Product portfolio analysis (1 questions)
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Diversification expands the range of products a firm offers, which can reshape how the brand is perceived and which customers it aims to serve.
- Advantages
- Broader market coverage – the firm can appeal to multiple segments, reducing reliance on a single customer base.
- Cross‑selling opportunities – complementary products reinforce a unified brand image and increase average transaction value.
- Potential Risks
- Brand dilution – too many disparate products may confuse consumers about the core brand promise.
- Resource stretch – marketing budgets and managerial focus become fragmented, leading to weaker campaigns for individual products.
Consequently, marketers must balance the desire for growth through diversification with the need to maintain a clear, coherent brand position and efficient targeting strategies.