Service- Product mix can be described as a business which involves both tangible goods and intangible services where the quality of the service can be considered more important than the physical product. For example- lodging or training. Today, every product comprises of a service-good mix to some extent.
Risk can be diversifies if more than one product or service is offered, different market segments are targeted which can also lead to building credibility for the brand, thus leading to a sustainable business.
Care should be exercised while expanding the product or service mix. When it is decided to expand the mix, we should consider what all resources would be required by the new product or service and whether the firm has the capability to distribute the new offering or if it is economically viable. The customer demands should be met and sale of the new offerings should not have any adverse impact on the sale of the existing offerings.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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