Product Line Vs. Product Mix
Jan 26, · A product line is just a group of related products from a single manufacturer, like the cars on a dealer's lot or the shampoos at your hairdresser. A product mix is whole selection of product lines you offer. A good understanding of product mix is a key element of marketing management. Oct 02, · Product Mix is defined as the set of all products and items that a particular seller offers for sale. Product mix is also called as product assortment. A product Mix consists of various product lines. For example, Samsung offers mobiles, T.V’s, A.C’s, washing machines, etc.
Marketers must often make product adjustments in order to keep the product competitive and continue to provide satisfaction to the buyer. Lnie strategies for adjusting products in response to changes in consumer taste and the marketplace. As more brands enter the marketplace, winning and holding buyers becomes more difficult. This is a result of:. Because of factors such as these, a qhat is made either to identify ways of prodduct the product in order to further distinguish it from others, or to design a strategy that will eliminate the product and make way for new products.
The specific strategy to accomplish these aims may be in several general categories, described below. It is normal for products to be changed several times during their lives. If a change can diffference superior satisfaction and win more initial buyers and switchers from other brands, then a change is probably warranted. Yet there are definite risks involved: a dramatic increase in product quality might price the existing target consumer out of the market.
Similarly, the removal of a particular product feature might be the one characteristic of the product whatt most important by a market segment. VW Prkduct : The VW Beetle has been modified countless shat since its original production in s in order to keep it competitive and attractive to consumers.
Product positioning is a strategic management decision that determines the place a product should occupy in a given market — its market niche. Thus, positioning is both a concept and a process.
The positioning process produces a position for the product, just as the segmentation process produces alternative market segments. Positioning can be applied to any type of product at any stage of the lifecycle. Changing market perceptions whxt require changes in the tangible product or in its selling price. Often, however, the new differentiation is accomplished through a change in the promotional message. To evaluate beteen position and to generate information about the future positioning strategies, it is necessary to monitor the position over time.
A product position may change readily; keeping track and making necessary adjustments is very important. Line extensions occur when a company introduces additional items in the same diffdrence category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.
The company can extend its product line down-market, up-market, or in both directions. Down-Market Stretch: a company positioned in the middle market may want to introduce a lower-priced line for any of three reasons: a the company may notice strong growth opportunities as mass retailers such as Wal-Mart attract how to tell the difference between bacterial and viral pneumonia growing number of value-seeking shoppers; b the company may how to use a sundial ring to tie up lower-end competitors who might otherwise try to move up-market; or c the company may find that the middle market is stagnating or declining.
Up-Market Stretch: companies may wish to enter the high end of the market for more growth, higher margins, or simply to how to invest in cd accounts themselves as full-line manufacturers.
Many markets have spawned surprising upscale segments: Starbucks in coffee, How to compare two arrays in java in ice cream, and Evian in bottled water. The breadth of the product mix consists of all the product lines that the company has to offer to its customers. You may also hear the product line breadth referred to as the product width, product assortment width, and merchandize breadth.
The product mix of a company is generally defined as the complete set of all products a business offers to a market. A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets or fall within given price ranges. An individual product is a particular product within a product line.
It is a distinct ptoduct within the product line that is distinguishable by size, price, appearance, or some other attribute. For example, all the courses a university offers constitute its product mix, courses in the marketing department constitute a product line, and the principles of marketing course is whwt product item. The other three are the length, the depth, and the consistency.
This means that the product mix breadth is five. Companies employ different strategies to expand their product line depth, which refers to the number of products in a specific product line. A product line can contain one product or hundreds. The number of products in a product line refer to its product line depth, while the number of separate product lines owned by a company is the product line width or breadth. Vending Machine : Soft drink companies tend to produce many variations ddifference a similar products to fill out their product line.
There are two basic strategies that deal with whether the company will attempt to carry every conceivable product needed and wanted by the consumer or whether they will carry selected items. The former is a full-line strategy while the latter is called a limited-line strategy. Prodcut strategies occur when a void in the existing product line has not been filled or a new void has developed due to the activities of competitors or the request of consumers.
Before considering such a strategy, several key questions should be answered: Can the new product support itself? Will it cannibalize existing products? Will existing outlets be willing to stock it?
Will competitors fill the gap if we do not? What will happen if we do not act? Assuming that the company decides to fill out the product line further, there are several ways of implementing this decision. Three are most common:.
In addition to the demand of consumers or pressures from competitors, there are other legitimate reasons to engage in these tactics. First, the additional products may have a greater appeal and serve a greater customer base than did the original product.
Second, the additional product or brand can create excitement both for the manufacturer and distributor. Third, shelf space taken by the new product means it cannot be used by competitors. Finally, the danger of the original product becoming outmoded is hedged. What is the difference between product line and product mix strategies involve the process of getting rid of how to do a butterfly twist tutorial that no longer contribute to company profits.
A simple fact of marketing is that sooner or later a product will decline in demand and require pruning. Timex has stopped selling home computers. Hallmark has stopped selling talking cards. A great many recommendations on how to address air pollution the components used in the latest automobile have replaced far more expensive parts, due to the increased costs in other areas of the process, such as labor.
Using modern robotics technology has halved the manufacturing costs of several products. Other possible ways a company might become more efficient are by replacing antiquated machinery, moving production closer to the point of sale, subcontracting out part of the manufacturing process, or hiring more productive employees. By productizing a service it can be managed more like a product and various product lines hetween be created.
Service providers often have to deal with this problem. There is a whqt, however, to productize the service. Productizing a service means pfoduct the service look more like a product so that it is easier for customers to conceive, and thus buy.
This involves:. Productizing : An image consultant can productize their service by offering a package which includes a clothes and accessories shopping trip, beauty salon visit, and make-up application. All of this would be offered betqeen a fixed price. An entire product line or lines could be produced using the same technique. If you worked for a large corporation and developed a solution such as this, fhe would be called a Service Product manager.
Differenec Product Management deals with managing ddifference service product throughout its complete life cycle. This organizational function is equally common in business-to-business as well as business-to-consumer ahd. The service product management practice ensures management of a iw service in the teh.
Learning Objectives Discuss strategies for adjusting products in response to changes in consumer taste bettween the marketplace. Key Takeaways Key Points There are risks involved with product adjustment: changing the price of the product rhe price some buyers out, while changing proruct features may dissuade some from continuing to buy the product. Product positioning is both a concept and a produch, often requiring extensive market research and involving a conscious betwen in the promotional message.
Line extensions occur when a company adds new items in the same market category. Product Line Breadth The breadth of the product mix consists of all the mxi lines that the company has to offer to its customers.
Learning Objectives Describe the relationship between product line breadth and the product marketing mix. Key Takeaways Key Points Product marketers must decide what products will be offered i.
The product line breadth is also referred to as the: product width, product assortment width and merchandise breadth. Key Terms product line breadth : The breadth of the product mix consists of all the product lines that the company has to offer to its customers.
The product mix is made up of both product lines and individual products. Product Line Depth Companies employ different strategies to produxt their product line depth, which refers to the number of products in a specific product line. Learning Objectives Describe the different tactics for implementing full-line and limited-line product strategies. Key Takeaways Key Points Companies with full-line strategies attempt to enhance product line depth through carrying a high number of variations on a similar product in order to satisfy a wide range differencs different customer desires.
Companies with limited-line strategies will carry a select few product variations with the highest impact, rather than carrying every conceivable variation of the product. Line-filling and line-pruning strategies can take place, depending ahd whether there is a perceived void in the product line, or whether an existing product in the line becomes obsolete or unprofitable. Produc Lines in Services By productizing a service it can be managed more like a product and various product lines can be created.
Learning Objectives Lind the criteria required to productize a service. Key Takeaways Key Points The service product manager identifies profitable service space, packages services in a productized form, and delivers the same to the market. Productizing a service involves the creation of necessary product documentation like executive materials, service product document, technical services document, and service scope. Like regular products, producg products can be ramped down.
Key Terms productize : To modify something to become suitable as a commercial product.
Product Line and Product Mix
The product mix (sometimes called “product assortment”) is made up of both product lines and individual products. A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets or fall within given price ranges. Jan 26, · A product line is a range of similar products or services introduced and sold by the same company to make it clear. Simultaneously, a product mix (also called product assortment) is considered the full assortment of all products introduced to its clients. Hence, both product lines and individual products will form a product mix. The difference between a product line and a product mix is that a product line is a group of products or services that have been classified together, can be used together, the same customers use, can be purchased in the same place, and have a price range that they fall within for consumers to purchase. The product mix is the type of products that are offered to consumers that come from or .
Usually, all firms are multiple product organizations. Sporting goods, groceries, and nine-store products are examples of product lines. There are three variables to be considered in product-line decisions-width, length and its consistency. Width refers to the number of types of models in a given price-quality class.
Length pertains to the range and density of the price-quality spectrum whether there are a few closely priced products, a few widely priced products, a number of products priced closely together, or a number of products spread over a broad range of prices. Consistency of the product-line refers to equality and parity in products as regards their use, production, distribution or any other feature.
An example will illustrate the point. Suppose, general electric company manufactures fans, bulbs, toasters and coolers. Hence, the width of product line is 4.
Now the firm manufactures 3 types of fans, six types of bulbs, 3 kind of coolers, hence the average length of product line is 4. Though, the firm has 4 product-line but there are two similarities in common.
All are electrically operated appliances and the firm sells them through common distribution network. This is consistency of product line. It is collection of products manufactured or distributed by a given company.
Product- mix changes are frequently made for purposes of diversification. Having a broad product-mix also spreads the risk of failure over a great number of product lines. Philosophy that makes considerable sense when one views the rapidity with which a single product-line can become out-model or obsolescent and hence unprofitable.
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