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Adjustments to ProductsMarketers must often make product adjustments in order to keep the product competitive and continue to provide satisfaction to the buyer. Learning Objectives Discuss strategies for adjusting products in response to changes in consumer taste and the marketplace Key TakeawaysKey Points
Key Terms
Adjustments to ProductsAs more brands enter the marketplace, winning and holding buyers becomes more difficult. This is a result of:
Because of factors such as these, a decision is made either to identify ways of adjusting 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. Product Adjustment/ModificationIt is normal for products to be changed several times during their lives. If a change can provide 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 considered most important by a market segment. VW Beetle: The VW Beetle has been modified countless times since its original production in 1930s in order to keep it competitive and attractive to consumers. A key question the marketer must answer before modifying the product is: "What particular attributes of the product and competing
products are perceived as most important by the consumer? " Factors such as quality, function, price, service, design, packaging, and warranty may all be determinants. This evaluative process requires marketing research studies to learn of improvements buyers might want, evaluate the market reception given to the competitors 's improvements, and evaluate improvements that have been developed within the company. Product Positioning and RepositioningProduct positioning is a strategic management decision that determines the place a product should occupy in a given market – its market niche. Given this context, the word "positioning" includes several common meanings of position:
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. Approaches to positioning range from gathering sophisticated market research information on consumers's preferences and perceptions, to the intuition of the product manager or a member of his or her staff. Product Line Extensions A
product line extension is the use of an established product's brand name for a new item in the same product category. Line extensions occur when a company introduces additional items in the same product 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. Product Line BreadthThe breadth of the product mix consists of all the product 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 TakeawaysKey Points
Key Terms
Introduction: Product Marketing QuestionsProduct marketing in a business addresses five important strategic questions:
In this unit, you're going to learn about the relationship between the breadth of the product line and the product mix. Product Line BreadthThe breadth of the product mix consists of all the product lines that the company has to offer to its customers. If we take P&G, for example, the breadth of the major product lines would consists of hair products, oral care, soaps and detergents, baby care, and personal care. Proctor and Gamble's Brands: Proctor and Gamble has various product lines. You may also hear the product line breadth referred to as the product width, product assortment width, and merchandize breadth. Product Line Breadth and the Product Mix The product mix of a company is generally defined as the complete set of all products a business offers to a market. The product mix (sometimes called "product assortment") is made up of both product lines and individual products. Product Line DepthCompanies employ different strategies to expand 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 TakeawaysKey Points
Key Terms
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 of 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. 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. 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?
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. Yet there is stil serious risk to consider: unless there are markets for proliferation that will expand the brand's share, the newer forms will cannibalize the original product and depress profits. Line-pruning Strategies Line-pruning strategies involve the process of getting rid of products 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 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. Product Lines in ServicesBy productizing a service it can be managed more like a product and various product lines can be created. Learning Objectives State the criteria required to productize a service Key TakeawaysKey Points
Key Terms
Introduction Consider this scenario: you provide a service, let's say image consulting. You've been in business for quite some time and have been charging an hourly rate. Business has been okay, but you constantly have to defend your rate to clients who benefit from your service but still complain that your rate "seems to be a bit high." Or maybe they are reluctant to even use your service because they don't know what they will be getting for that
price. How to Productize a ServiceProductizing a service means making the service look more like a product so that it is easier for customers to conceive, and thus buy. This involves:
Going back to the image consulting business, instead of charging an hourly rate, you could productize your service by offering a "One-Day Makeover. " The product would consist of a: 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 for a fixed price. And there's no need to stop there. An entire product line (or lines) could be produced using the same technique. The Service Product Management Service Product Management deals with managing a service product throughout its complete life cycle. This organizational function is equally common in business-to-business as well as business-to-consumer organizations. Licenses and AttributionsCC licensed content, Shared previously
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Why would a firm eliminate an item within a product line quizlet?Why would a firm eliminate an item within a product line? The product undermined its own brand.
What is the importance of product mix and product line?Many businesses that sell multiple products use product lines and product mixes to monitor the different products they produce and sell to customers. While a product line refers to related products sold in a business, the product mix is the total number of all products a business sells.
Why is it important to change the product mix?Minor or major changes in product mix are made to prevent, remove, or to fight with competitors. Company changes its product mix to offer more competitive advantages and prove the superiority of products over competitors through product differentiation.
Why would a company use an alteration product mix strategy?Why would a business use an alteration product-mix strategy? Altering existing products is less expensive than developing a new product and has a greater chance of success.
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