Product Family

AAA

DEFINITION of 'Product Family'

A group of related goods that are manufactured by a single company. Companies benefit from creating product families in that they can leverage the loyalty their existing customers feel toward an existing product to get them to buy additional, related products. Product families also allow companies to attract new customers to their brand by providing an array of products that are similar but meet slightly different needs. Customers benefit from product families because they can rely on their positive experience with an existing brand when choosing a new product.

INVESTOPEDIA EXPLAINS 'Product Family'

For example, a backyard gardener might have been using the same pesticide for years to control the caterpillars that always try to eat his tomato plants. One year, he decides to try growing sugar snap peas for the first time and discovers that he needs a new product to control a disease, powdery mildew, that is affecting his crop. The company that produces the caterpillar pesticide has an entire family of products to help the home gardener successfully cultivate different crops, so when the gardener goes to the store to purchase a product for his new problem, he looks for one made by the same brand that he is already using. The gardener can shop quickly and get peace of mind by buying from a product family he already has experience with, and the gardening product company gains additional business from an existing customer.

RELATED TERMS
  1. Product Line

    A group of related products manufactured by a single company. ...
  2. Brand Personality

    A set of human characteristics that are attributed to a brand ...
  3. Brand Recognition

    The extent to which the general public (or an organization's ...
  4. Brand Management

    A function of marketing that uses techniques to increase the ...
  5. Brand Loyalty

    When consumers become committed to your brand and make repeat ...
  6. Brand Equity

    The value premium that a company realizes from a product with ...
Related Articles
  1. In retail, successfully managing return on investment (ROI) and other financial indicators is the key to a healthy business.
    Fundamental Analysis

    The 4 R's Of Investing In Retail

  2. Entrepreneurship

    Public Relations: Offering Businesses ...

  3. Professionals

    The Marketing Director's Pitch

  4. Retirement

    Generational Marketing: Harvest The ...

Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  3. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  4. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  5. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  6. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
Trading Center