PRODUCT/SERVICE MANAGEMENT AND PRICING

3.03 B Position company to acquire desired business image.

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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.

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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.

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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.

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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.

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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.

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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