Marketing Obj. 2.04 ppt
- 1. Marketing Indicator 2.04 Employ product-mix strategies to meet customer expectations.
- 2. Identify ways in which product lines can be organized.  Product Line – group of closely related products manufactured by a business  Product Item – specific model, brand, or size of a product within a line  Ex: P&G has over 250 products within 21 product lines  Dish care is a product line  Cascade, Dawn, Joy, & Ivory are items
- 3. Describe product mix dimensions.  Product Mix – All the types of products a company makes or sells  Some companies have different brands for different markets  Coca-Cola has different drinks for sparkling beverages, water, juice, performance, coffee, tea, and international flavors.
- 4. Identify reasons that a business would offer a narrow product mix.  Product Width – number of different product lines  CONTRACTING  Ease on management  Cost effective  Simplicity  Consistency
- 5. Identify reasons that a business would offer a broad product mix.  Product Width – number of different product lines  EXPANDING  Reach all markets  Competitive advantage  Ex: Red Lobster specializes in seafood, but offers chicken and steak to broaden their product mix.
- 6. Identify reasons that a business would offer a deep product mix.  Product Depth – number of items offered within each product line  EXPANDING  Variety  Quantity Ex: Kohl’s carries various quantities of sizes, colors, & styles of Levi Jeans.
- 7. Identify reasons that a business would offer a shallow product mix.  Product Depth – number of items offered within each product line  CONTRACTING  Cost effective  Satisfy small markets  Ex: Only 2 chicken items on Red Lobster’s menu.
- 8. Explain the importance of a business’s product mix.  Businesses must plan their product mix carefully because they cannot offer all the products that customers may want.  They should be a profitable market for product offered by a company
- 9. Describe alteration product- mix strategies. ď‚›Alteration of Existing Products: ď‚›Improve an established product with new design, new package, new uses. ď‚› Ex: Jeep offering 4 doors
- 10. Describe trading up / down product-mix strategies. ď‚› Trading up: Adding a higher-priced product to a line to attract a higher- income market and improve the sales of existing lower-priced products. ď‚› Trading down: Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.
- 11. Describe positioning product- mix strategies.  Positioning – actions marketers take to create a certain image of a product in the minds of the customers • In Relation to a Competitor • In Relation to a Product Class or Attribute • In Relation to a Target Market • By Price and Quality • Difficult to change