1. PRODUCT SERVICE MANAGEMENT FUNCTION
MKT-MP-9
Employ processes and techniques to develop, maintain, and improve a product/service mix to utilize market opportunities.

2. Product Planning
How are decisions made to introduce new products and delete old ones?

3. Product Planning
Involves making decisions about those features that are needed to sell a business’s products, services, or ideas.

4. Product Planning These decisions relate to: packaging labeling
warranties
guarantees
branding
product mix

5. What is Product Planning? (cont.)
Product Item: A specific model, brand, or size of a product within a product line.
Product Line: A group of closely related products manufactured or sold by a business.
Product Mix: All the different products that a company makes or sells.
Product Width: The number of different product lines a business manufactures or sells.
Product Depth: The number of product items in a product line.

6. Product Mix and Product Line
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

7. Product Mix http://www.fritolay.com/index.htm
Includes all the different products that a company makes or sells.

8. 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
product items

9. Describe product mix dimensions.
Some companies have different brands for different markets
Coca-Cola has different drinks for sparkling beverages, water, juice, performance, coffee, tea, and international flavors.

10. Product Line
A group of closely related products manufactured and/or sold by a business.

11. Product Item
A specific model, brand, or size of a product within a product line.

12. DIMENSIONS WIDTH = number of product lines carried by a company.
NARROW = offering a limited number of product lines
BROAD = many different product lines carried
DEPTH = number of products and the assortment of sizes, colors, and models offered in a product line
SHALLOW = limited variety within a product line
DEEP = extensive variety within a product line

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

14. Product Width
The number of different product lines a business manufactures or sells.
Width of the Gillette Product Mix
Oral Care
Blades & Razors
Personal Care
Batteries
Appliances

15. Product Depth
The number of product items offered within each product line.
Oral Care
Blades & Razors
Personal Care
Batteries
Appliances

16. NARROW PRODUCT MIX
= Limited product lines carried, typically very specialized. A description of the width of a business's product mix offering a limited number of product lines.

17. Broad Product Mix
= Many different product lines carried. A description of the width of a business's product mix offering many product lines.

18. Shallow Product Mix
= Limited variety within a product line. A description of the depth of a business's product mix offering few items in the product line.

19. Deep Product Mix
= Extensive variety within a product line. A description of the depth of a business's product mix offering a great many items in the product line.

20. Identify reasons that a business would offer a narrow product mix.
Product Width – number of different product lines
CONTRACTING - Pruning weak brands can strengthen the remaining brands in the line.
Ease on management
Cost effective
Simplicity
Consistency

21. 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.

22. Identify reasons that a business would offer a deep product mix.
Product Depth – number of items offered within each product line
EXPANDING
Variety
Quantity
Ex: Kohl’s carries various quantities of sizes, colors, & styles of Levi Jeans.

23. 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.

24. Work Session: Choose a company that offers a variety of products.
Outline the product width and depth.