Best way a company can build and manage its product mix and product lines

product mix example

There is a solution, however, to productize the service. All marketing questions presented are thoroughly discussed. Using modern robotics technology has halved the manufacturing costs of several products.

Product mix of different companies

Coordinate With the Production Department When you contemplate adding a new product line to your mix, you must ensure you have the production capacity to meet the demands of your project. The function is a core service business management function and is a mix of sales and marketing functions. 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. Solution Summary This solution explains the best way a company can build and manage its product mix and product lines, diversification, adaptation, and new product development. Positioning can be applied to any type of product at any stage of the lifecycle. The marketing dept. 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 a growing number of value-seeking shoppers; b the company may wish 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. A product line can contain one product or hundreds. If a change can provide superior satisfaction and win more initial buyers and switchers from other brands, then a change is probably warranted. A great many of 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. A simple fact of marketing is that sooner or later a product will decline in demand and require pruning. Line-filling Strategies Line-filling 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. All marketing questions presented are thoroughly discussed.

Product Lines in Services By productizing a service it can be managed more like a product and various product lines can be created. This organizational function is equally common in business-to-business as well as business-to-consumer organizations.

You could, for example, offer a computer for students, a more advanced model for businesspeople and smaller, portable models for travelers.

3 how can a company build and manage its product mix and product lines

Will it cannibalize existing products? 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 of different customer desires. When a proper analysis is performed, we reduce the chances that we're missing a significant part of the target market, and we're reducing the chances that the product lines won't really cater to the needs of our target market. An individual product is a particular product within a product line. Firestone producing a less expensive tire for Kmart In addition to the demand of consumers or pressures from competitors, there are other legitimate reasons to engage in these tactics. 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. Three are most common: Product proliferation: the introduction of new varieties of the initial product or products that are similar e. Companies who start to go outside their core business and offer products they don't know and don't know the customer typically fail. Will existing outlets be willing to stock it? Thus, positioning is both a concept and a process. Assuming that the company decides to fill out the product line further, there are several ways of implementing this decision. Learning Objectives Discuss strategies for adjusting products in response to changes in consumer taste and the marketplace Key Takeaways Key Points There are risks involved with product adjustment: changing the price of the product may price some buyers out, while changing the features may dissuade some from continuing to buy the product. The other three are the length, the depth, and the consistency. The former is a full-line strategy while the latter is called a limited-line strategy.

Second, the additional product or brand can create excitement both for the manufacturer and distributor. Line extensions occur when a company adds new items in the same market category.

product system and mixes
Rated 6/10 based on 71 review
How can a company build and manage its product mix and product lines?