1 / 14
Download Presentation

Marketing Indicator 3.03

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Marketing Indicator 3.03 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 narrowproduct 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 broadproduct 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 deepproduct 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 shallowproduct 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 importanceof 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. • Alteration of Existing Products: • Improve an established product with new design, new package, new uses. • Ex: Jeep offering 4 doors

  10. Describe trading up / down product-mix strategies. • 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. • 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

  12. Pepsi Co • Proctor & Gamble (PG)

  13. 2 companies, 3 different products items (product mix) • Label each side with company name. Paste 3 pictures (3 different products). • Proctor & Gamble (www.pg.com) • PepsiCo www.pepsico.com • Chevrolet • Johnson & Johnson • General Mills • ConAgra

  14. Product Mix!-Company of your choice-Organize product lines & items.-Highlight and label all- Just like P&G!

More Related