Product Family - Definition & Meaning
What is Product Family?
A Product Family can be simply defined as a collection of related products which are produced by a single company. All the group products are linked to a common product platform. These products or services have similar or same have similar physical characteristics, production processes and may share distribution channels, customer segments, promotional campaigns, pricing methods and few other factors of the marketing mix and strategy.
Organizations benefit from their product families by leveraging the customer loyalty of their existing customers toward an existing product and lure them to purchase additional, related products. Another advantage of having a product family is that companies can attract new customers towards their brand by offering a wide variety of products which are similar but look to satisfy slightly different needs. Product families also benefits customers as they can depend on their previous experience with any existing brand while purchasing a new product which is available in its product family. It can backfire as well because if any customer has had an unpleasant past experience with any brand product it will deter him from making any purchase of any product from the same brand’s product family.
Products which make up a product family are occasionally priced and discounted under schemes to be sold as a package. A group of product families together make up a product portfolio. It is also called as a product group or product line. There are a lot of companies in the market which have product family. For Example – Apple as a company has a product family of the electronic devices that it has in market.
Hence, this concludes the definition of Product Family along with its overview.
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.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
Continue Reading:
