Going back to the basics, keep in mind your target user needs and how your product or service meets those needs. This is fundamental. An offering consists of the benefits or satisfaction provided to target markets by an organization. An offering consists of a tangible product or service plus related services. This may include installation, warranties, guarantees, and packaging. Focusing on the offering, rather than on the actual product or service itself, can be valuable to analyze the consumers’ alternatives, to better identify the unmet needs and wants of the target markets, and to enhance the development of new products or services. This approach allows you to think beyond the tangible “product” entity and consider what the consumer is actually buying and their reasoning behind that purchase.
In a larger sense, an organization’s offerings are a part of who they are as a business. Their offerings illustrate the buyer needs served, the types of customer groups sought, and the means for satisfying their needs. Your marketing plan should address how that offering is communicated and what value it holds for the consumer.
Most organizations sell more than one product. A multi-product approach often adds value, leverages economies of scale and expertise, and increases revenue generation potential. The combined offerings of an organization are known as their offering mix. This offering mix can be classified according to the width, length, depth, and consistency of the products. These four dimensions are the tools for developing the company’s marketing strategy and deciding which product line to grow, maintain, harvest, or divest. Strong products should be grown or maintained. Weak or unprofitable lines should be sold or discontinued. Four basic factors are critical in the decision to manage individual product lines:
1. Consumer demand.
2. Cost to produce.
3. Gross margin.
4. Total sales volume.