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Product Line and Mix  Product mix The composite of products that a company sells to consumers. A company's family of products. The composite of products.

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Presentation on theme: "Product Line and Mix  Product mix The composite of products that a company sells to consumers. A company's family of products. The composite of products."— Presentation transcript:

1 Product Line and Mix  Product mix The composite of products that a company sells to consumers. A company's family of products. The composite of products that a company sells to consumers. A company's family of products.  Gerber makes baby food, baby clothes, nursery equipment, vaporizers.  Kraft cheese, salad dressing, cereal, barbecue sauce, syrup, crackers, cookies, frozen pizza, jello, etc.  General Motors: Chevrolet, Buick, Chrysler, Saturn, Cadillac, Pontiac, GMC  Ideally, there are synergies across product lines.

2 Product Line and Mix, con’t  Product line: A group of closely related, similar items that are considered a unit because of end-use considerations. A group of closely related, similar items that are considered a unit because of end-use considerations.  Coke, Diet Coke, Coke-Zero, Sprite, Mountain Dew, Mr. Pibb  Procter & Gamble: Tide, Cheer, Oxydol, Era, Bold  Ford Focus, Ford Fusion, Ford Taurus, Ford Mustang  Each item in product line targeted to different segment. Must coordinate marketing mixes.

3 Product Line and Mix, con’t  Width and Depth: width refers to breadth of product mix (variety) width refers to breadth of product mix (variety) depth refers to breadth of a product line (assortment) depth refers to breadth of a product line (assortment)  Baskin-Robbins has narrow product mix (little variety), but very deep product line (large assortment)  Rose-Hill makes occasional tables: narrow mix, deep line.  Lane makes recliners, motion, stationary, sofa-sleepers, etc. Wide mix and deep lines.  Wal-Mart has wide selection, but not deep  Width and Depth has implications for pricing, promotion, and distribution

4 Complementary products (joint products)  Two products that are mutually dependent. Use one product to help sell the other. Must understand the relationships among all of the products and coordinate marketing efforts. Use one product to help sell the other. Must understand the relationships among all of the products and coordinate marketing efforts.  Gillette: razors and blades  Chiropractor: free consultation, then pay for visits  General Electric: aircraft engines and engine parts  Classic example: Kodak sold cameras at relatively low price. Makes most of its money when customers buy film/disks.


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