2. PRODUCT MIX AND PRODUCT LINE
The product mix is the full list of all products
offered for a sale by a company.
A product mix has two dimensions:
Breadth (Width) - Different lines.
Depth - Assortment within a line.
A product line is a broad group of products,
intended for essentially similar uses and
possessing reasonably similar physical
characteristics.
3. BREADTH (DIFFERENT LINES)
Lawn mowers Gardening tools Lawn furniture
H
DEPT TMENT Power rotary Rakes Chairs
)
SOR A LINE
(AS IN
H
W IT Power reel Hoes Chaise lounges
Hand-powered Shovels Benches
Various sizes
and prices in
redwood or
Each in various Each in various
aluminum with
sizes and prices sizes and prices
plastic webbing
4. DEPTH
SHALLOW DEEP
ONE MODEL FOR MANY M ODELS
EACH OF A FEW FOR EACH OF A
NARROW
SIMILAR PRODUCT FEW SIMILAR
LINES PRODUCT LINES
WIDTH
ONE MODEL FOR EACH MANY M ODELS
OF SEVERAL FOR EACH OF
WIDE DIFFERENT PRODUCT SEVERAL DIFFERENT
LINES PRODUCT LINES
5. Detergents Toothpaste Bar Soap Deodorants Disposable Coffee
Diapers
Ivory Snow Gleem 1952 Ivory 1879 Secret 1879 Pampers 1961 Folger's 1963
1930 Crest 1955 Camay Sure 1972 Luvs 1976 Instant Folger's
Dreft 1933 1927 1963
Tide 1946 Lava 1928 High Point Instant
Joy 1949 Kirk's 1930 1975
Cheer 1950 Zest 1952 Floger's Flaked Coffee
Oxydol 1952 Safeguard 1977
Dash 1954 1963
Cascade Coast 1974
1955
Duz 1956
Ivory Liquid
1957
Gain 1966
Dawn 1972
Era 1972
Bold 3 1976
6. MAJOR PRODUCT MIX STRATEGIES
Expansion of Product Mix
Breadth - Mix extension.
Depth - Line extension.
Contraction of Product Mix
Breadth
Depth
Alteration of Existing Products
Positioning the Product
Position is the image that the product projects
in relation to competitive products and to
other products marketed by the company.
7. Perceptual Map of Six Graduate Business Schools - Simple Space
Qualitative
Curriculum
Harvard
Chicago Stanford
Wharton Prestige
Carnegie
Massachusetts Institute
of Technology
Quantitative
curriculum
8. Long Life
Luxury
Summer
Home
Cottage Luxury
Home
Low Furnishings High
Visibility Visibility
Foreign Luxury
Vacations Car
Short Life
9. Has a Touch of Class
Lincoln
a Car I’d Be Proud to Own
Cadillac
Distinctive Looking
Mercedes Porsche
Chrysler BMW
Buick
Pontiac
Oldsmobile
Conservative Chevrolet Has Spirited
Looking Ford Performance
Appeals to Datsun Appeals to
Older People Young People
Toyota
Fun to Drive
Dodge Sporty Looking
VW
Plymouth Very Practical
Provides Good Gas Mileage
Affordable
10. High Price
Calvin Klein
Sasson Jordache
I1 (Status seeker)
Lee Levi
I2 (Dependable shopper)High
Low
Status Status
Gap store
brand
I3 (Economizer)
Low Price
11. Light
8 Miller
5
9
B 2 7
C 3 Hamm’s
Low- High-
priced A priced
D Schlitz
4 1 Budweiser
6
Heavy
13. TRADING UP AND TRADING DOWN
Trading up: Adding a higher-priced, prestige
product to a line in the hope of increasing the
sales of existing lower-priced products.
Trading down: Adding a lower-priced item to a
line of prestige products in the hopes that
people who cannot afford the original product
will want to buy the new one, because it carries
some of the status of the higher-priced good.
Problems
May confuse buyers
Sales are at the expense of older products
May permanently harm company reputation
14. PRODUCT DIFFERENTIATION
AND MARKET SEGMENTATION
Product differentiation: Developing and
promoting an awareness of differences between
one company's product and those of competitors
Market Segmentation: To develop different
products each one suited to one or more
segments of the market.
