marketing indicator 3.03 part i

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Marketing Indicator 3.03 Part I Employ product-mix strategies to meet customer expectations.

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Marketing Indicator 3.03 Part I. Employ product-mix strategies to meet customer expectations. Identify ways in which product lines can be organized. Product Line – group of closely related products manufactured by a business - PowerPoint PPT Presentation

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Page 1: Marketing Indicator  3.03 Part I

Marketing Indicator 3.03Part I

Employ product-mix strategies to meet customer expectations.

Page 2: Marketing Indicator  3.03 Part I

Identify ways in which product lines can be organized.

Product Line – group of closely related products manufactured by a business

Product Item – specific model, brand, or size of a product within a line◦ Ex: P&G has over 250 products within 21 product lines

Dish care is a product line Cascade, Dawn, Joy, & Ivory are items

http://www.youtube.com/watch?v=MS4BTMIlVn8

http://www.youtube.com/watch?v=tAT-cFFGNQg&feature=related

Page 3: Marketing Indicator  3.03 Part I

Describe product mix dimensions.

Product Mix – All the types of products a company makes or sells◦ Some companies have different brands for

different markets◦ The Coca-Cola Company has different drinks for

sparkling beverages, water, juice, performance, coffee, tea, and international flavors.

http://www.youtube.com/watch?v=pI5D4OF7uqg

Page 4: Marketing Indicator  3.03 Part I

Identify reasons that a business would offer a narrow product mix.

Product Width – number of different product lines

CONTRACTING◦ Ease on management◦ Cost effective◦ Simplicity◦ Consistency

http://www.msnbc.msn.com/id/21134540/vp/31043528#31043528

Page 5: Marketing Indicator  3.03 Part I

Understanding Product Mix Strategies

Page 6: Marketing Indicator  3.03 Part I

Marketing Indicator 3.03Part II

Employ product-mix strategies to meet customer expectations.

Page 7: Marketing Indicator  3.03 Part I

Identify reasons that a business would offer a broad product mix.

Product Width – number of different product lines

EXPANDING◦ Reach all markets◦ Competitive advantage

◦ Ex: Red Lobster specializes in seafood, but offers chicken and steak to broaden their product mix.

Page 8: Marketing Indicator  3.03 Part I

Identify reasons that a business would offer a deep product mix.

Product Depth – number of items offered within each product line

EXPANDING◦ Variety◦ QuantityEx: Kohl’s carries various quantities

of sizes, colors, & styles of Levi Jeans.

Page 9: Marketing Indicator  3.03 Part I

Identify reasons that a business would offer a shallow product mix.

Product Depth – number of items offered within each product line

CONTRACTING◦ Cost effective◦ Satisfy small markets

◦ Ex: Only 2 chicken items on Red Lobster’s menu.

Page 10: Marketing Indicator  3.03 Part I

Explain the importance of a business’s product mix.

Businesses must plan their product mix carefully because they cannot offer all the products that customers may want.

They should be a profitable market for product offered by a company

http://www.youtube.com/watch?v=npSE6ODpRD4&feature=related

Page 11: Marketing Indicator  3.03 Part I

Describe alteration product-mix strategies.

Alteration of Existing Products: ◦Improve an established product with

new design, new package, new uses.Ex:

◦Jeep offering 4 doors◦Coke’s New Formula

http://www.youtube.com/watch?v=Tz-47sI-AYM&feature=related

Page 12: Marketing Indicator  3.03 Part I

Describe trading up / down product-mix strategies.Trading up: Adding a higher-priced product to

a line to attract a higher-income market and improve the sales of existing lower-priced products.

Trading down: Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.

Page 13: Marketing Indicator  3.03 Part I

Describe positioning product-mix strategies.

Positioning – actions marketers take to create a certain image of a product in the minds of the customers• In Relation to a Competitor• In Relation to a Product Class or Attribute• In Relation to a Target Market• By Price and Quality • Difficult to change

Page 14: Marketing Indicator  3.03 Part I

Understanding Product Mix Strategies