1. PRODUCT LINE DECISION
IMPANA. C .M.
1ST M.COM.
Under the guidance of
Sundar .B.N.
Asst, professor, co-ordinator of
M.com
GFGCW,PG Studies in commerce
Holenarasipura
2. WHATISA PRODUCTLINE?
A product line is a group of products
that are closely related because they
function similarly, are sold to the
same customer groups, are marketed
through the same types of outlets, or
fall within given price ranges.
• Belongs to a single manufacturer
• Serves the common general
purpose
• Targets different market segments
4. WHY PRODUCT LINE DECISION?
• Provides better market access
• Involves huge investment /
disinvestment
• Product have close influence
5. PRODUCT LINES STRATEGIES :
EXPANSTIONOF PRODUCT
• Process of adding more products to the line
• Valid only if:
1.There is a well established brand arena and
customers are accustoment to switc.
2.Competitor lacks a comparable product
3.Competitor have already expanded to the
proposed area.
6. CONTRACTIONOFTHEPRODUCTLINE
• Dropping a product from the line.
• The reasons behamd a drop may be;
1. Fine tuning the Market performance
2. Eliminating a poor performing product
3. Uplifting a product with more potential
4. This is a much difficult task since mich money. Is
already been invested and hence products are
allowed to linger on until they become a loss.
8. DEVELOPINGNEWUSE FOR THE
EXISTING PRODUCTS
This is intended to attract a new
category of customer to the
manufacturer without forming a
new product.
Investment in R and D and
advertisement is required.
9. FOCTORS INFLUENCINGPRODUCT LINE DECISIONS
1.Changes in market demand.
2.Competitive action and reaction.
3.Marketing influences.
4.Product influences.
5.Financial influences.
10. MCQ
1 The major product line decision involves…..
A.Line equity
B.Product line depth
C.Product line conformance
D.Product line length
Anss : D
2 ………….. Influences product line decisions.
A customer preference
B change in demand
C product sepecialistaion
D All of these
And : D
11. 3 ……… Is any goods, services or idea that is proeceived by
someone as new.
A. Innovation
B. Product
C. New idea
D. Creative produc
Ans: B