PRODUCT/SERVICE MANAGEMENT AND PRICING 3.03 B Position company to acquire desired business image.

2 Product mix Product item: A specific version, model, brand, or size of a product. Product line: A group of items that are sold together because of marketing, technical, or end-use considerations. Product modification: An alteration in a company’s existing product.

3 Product mix (cont.) Product assortment (mix): The total of all products a business offers to a market. –Product width (breadth): The number of different product lines a business manufactures or sells. –Product depth: The number of items offered within each product line.

4 Product width (breadth) Broad assortment: A product assortment that includes many product lines. Narrow assortment: A product assortment offering a limited number of product lines.

5 Product depth Deep assortment: A product assortment offering many product items within the product line. Shallow assortment: A product assortment offering a limited number of product items within the product line.

6 Product mix (cont.) Product or line deletion: A company decision to no longer carry a product or even an entire product line. Decisions can be based on the following: –Obsolescence –Loss of appeal –Company objective changes –Product replacement –Lack of profit –Product conflict in product line Product development: The process of creating or improving a product or service.

7 Steps in new product development 1.Idea generation 2.Idea screening 3.Concept development and testing 4.Marketing strategy development 5.Business analysis 6.Product development 7.Test marketing 8.Commercialization