9-1. 9-2 Product-Mix Strategies Chapter 9 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation transcript:

9-1

9-2 Product-Mix Strategies Chapter 9 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

9-3 Chapter Goals McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Difference between product mix and product line Product-mix strategies - positioning, expansion, alteration, contraction Trading up and trading down Managing products throughout a life cycle Planned obsolescence Style and fashion Fashion-adoption process

9-4 Product Mix and Product Line PRODUCT MIX The set of all products offered for sale by a company PRODUCT MIX The set of all products offered for sale by a company PRODUCT LINE A broad group of products for similar uses and with similar characteristics PRODUCT LINE A broad group of products for similar uses and with similar characteristics

9-5 BREADTH The number of product lines carried Product Mix DEPTH Variety of sizes, colors, models within a product line PRODUCT MIX

9-6 Product Mix- Breadth and Depth

9-7 Positioning the Product COMPETITORCOMPETITOR High price/high quality or low price High price/high quality or low price Differential advantage Differential advantage Associated with attractive attribute Associated with attractive attribute PRODUCT CLASS OR ATTRIBUTE OR ATTRIBUTE PRODUCT CLASS OR ATTRIBUTE OR ATTRIBUTE PRICE AND QUALITY PRICE

9-8 Product-Mix Strategies Alteration of existing products Alteration of existing products ContractionContraction Trading Up and Trading Down Trading Up and Trading Down ExpansionExpansion

9-9 Product Life Cycle

9-10 Product Life-Cycle Stages

9-11 Length of Product Life-Cycle Product life-cycle variations

9-12 Life-Cycle Management Entry Strategies Managing on the Rise Surviving the Decline Growth Introduction Maturity Decline Managing during Maturity

9-13 Planned Obsolescence Technological Obsolescence Technological Obsolescence Style Obsolescence Style Obsolescence

9-14 Fashion Adoption Process

9-15 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Product mix Breadth Depth Product line Product-mix expansion Line extension Mix extension Product alteration Product-mix contraction Trading-up Trading down Product life cycle Introduction stage Growth stage Maturity stage Decline stage Fad First-mover advantage Product abandonment Planned obsolescence

9-16 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Technological obsolescence Style obsolescence Style Fashion Fashion-adoption process Fashion cycle Trickle-down theory Trickle-across theory Trickle-up theory