Product Planning, Mix, and Development Key Terms product planning product mix product line product item product width product depth product modification Objectives Describe the steps in product planning Explain how to develop, maintain, and improve a product mix

Product Planning Product planning making decisions about what features should be used in selling a business’s products, services, or ideas. These decisions relate to product features and services, such as: Packaging, labeling, and branding Warranties and support services

Product Mix Product mix includes all the different products that a company makes or sells. A retailer’s product mix is made up of all of the different products the store sells. The mix must be planned carefully because retailers cannot offer all the products that customers may want.

Product Items and Lines Product line is a group of closely related products manufactured or sold by a business. Product item is a specific model, brand, or size of a product within a product line. Retailers generally carry several product items for each product line they sell. Companies will take advantage of a successful line by adding an item! This is called a line extension Companies will make changes to existing items. This is called a product modification

Product Width and Product Depth Product width refers to the number of different product lines a business manufactures or sells. Product depth refers to the number of items offered within each product line.

Product Mix Strategies Know this Concept Product Mix Strategies A product mix strategy is a plan for determining which products a business will make or stock. Some businesses will change their lines by modifying products, creating new ones, and/or dropping old ones. To determine its product mix, a business needs to: Identify its target market Identify its competitors Decide on the image it wants to project

Developing New Products Know this Concept Developing New Products Critical to maintain and improve profitability New products (those less than five years old) account for about 35 percent of total sales for major consumer and industrial goods companies. 7 There are steps in new product development . . . .

Developing New Products Know this on the test Developing New Products 7 steps in new product development . . . . Generating ideas Screening ideas Developing a business proposal Developing the product Testing the product with consumers Introducing the product (commercialization) Evaluating customer acceptance

Understand the process Developing New Products

Assignment Work with a partner. Research one Automobile manufacturer Write down its Product Mix and Product Width Identify a specific Product Line and its Product Depth Identify a specific Product Item From an existing Product line Add your idea for a line extension or Add your idea for a product modification