Small Business Case Product Decisions Night life Film Company is a movie product

Question

Small Business Case Product Decisions Night life Film Company is a movie production firm that wants to expand its product offerings. It currently has a good reputation for producing science fiction films. It could expand its product line by offering new types of science fiction films that might appeal to different age groups. Another possibility is to produce comedies or other types of films. It must also decide how to expand its product mix. It currently produces films for theaters and sells DVDS of the films several months after they have been in theaters. Product Line Decision. What would be an advantage to Night Life Film Company if it keeps its product line focused on science fiction films? Product Line Tradeoff. What would be a disadvantage to Night Life Film Company if it keeps its product line focused on science fiction films? Target Market Decision. Night Life Film Company recently produced a new move. It needs to advertise this move to consumers. Why must it decide on its target market for this movie before it advertises the movie? Impact of Customer Feed back. Night Life Film Company commonly allows consumers to complete an online survey about any of its movies. Why may this feedback be useful, even thought the movies have already been produced and cannot be changed?

Explanation / Answer

Answer 1:

Below are the advantages of keeping the product line focused on science fiction films:

Consumer knowledge: Nightlife film company is well versed in producing science fiction films since some time, so they are having good knowledge of audience from their past experiences and knows what exactly are their expectations.

Consumer trust: As audience have already seen their films related to sicence fiction they have trust and confidence on this company that this prodcution house knows what they are producing and it is worth to watch their work in theatres and buy their DVDs, which helps in generating more revenue.

Enhancement of brand visibility: When a same film company appears in theatres/DVDs repeatitively it can be a more effective and efficient brand-building approach than spending money on advertising. In addition, it suggests that the relationship with loyal customers will be strengthen because they will prefer same production house.

Lower Cost: By keeping the same prodcut line, they are not looking for any diversification and of course will use their resources regularly, repeatitively and efficiently which will definitely result in lower cost and higher profit margins.

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