Product anything a person receives during an exchange—product, service, idea, abstract good (education), or a combination of both.
Product planning —Decisions a business makes about features to be used when marketing a product, service, or idea.
Packaging, labeling, branding, services (warranties and guarantees), and product mix.
Well-developed product plan includes:
coordination of products already available to customers
addition of new products
deletion of products
allows a business to design appropriate marketing programs.
Product mix —All the products a company produces or sells.
Large manufacturers hundreds of products
Retailer’s product mix—All the products and services a retailer sells.
Must be planned carefully because they can’t offer every item consumers want.
Retailer’s Product Mix
Retailers must choose the type and number of products.
Decisions are based on:
objectives of the business
image they want to create
However, they must choose these products while adhering to the marketing concept.
A product mix consists of all product lines and items offered by a business.
Product Category —a group of related products of varying brands
All shoes at Shoe Carnival—Nike, Adidas, Puma, K Swiss, etc.
Product line —a group of closely related products manufactured or sold by a business
All Nike shoes, all Adidas shoes
Businesses usually carry more than 1 product line.
Product item —a specific model, brand, or size of a product within a product line
Category/Line/Item Product Category Product Line Product Item
Product Width/Product Depth
Product width —The number of different product lines a business/manufacturer sells.
Product depth —The number of items offered within each product line.
Some businesses have a large product width but small product depth
Some businesses have small product width but large product depth
Decisions are based on:
Product Width/Product Depth, Cont’d.
They must review their product lines to see if they need to be expanded, decreased, or eliminated.
Category Killer : A specialty retailer that typically has a small product width but large product depth, which results in lower prices because of its segmenting capabilities, especially national chains .
Product Mix Strategies
Product mix strategies—deciding which products a business will produce/stock
Depends on the business’s resources available and objectives