The document discusses major product line strategies including expanding product mix by increasing product lines, contracting product mix by eliminating or simplifying product lines, altering existing products through redesign or new packaging, positioning products for certain customer groups and outlets, trading up or down by adding higher or lower priced products, and differentiating products through advertising their unique features. Product mix includes all products, brands, and items offered for sale or produced by a company across various product lines.
The document discusses major product line strategies including expanding product mix by increasing product lines, contracting product mix by eliminating or simplifying product lines, altering existing products through redesign or new packaging, positioning products for certain customer groups and outlets, trading up or down by adding higher or lower priced products, and differentiating products through advertising their unique features. Product mix includes all products, brands, and items offered for sale or produced by a company across various product lines.
Original Description:
Major Product Line Strategies aimed at the field of Marketing
The document discusses major product line strategies including expanding product mix by increasing product lines, contracting product mix by eliminating or simplifying product lines, altering existing products through redesign or new packaging, positioning products for certain customer groups and outlets, trading up or down by adding higher or lower priced products, and differentiating products through advertising their unique features. Product mix includes all products, brands, and items offered for sale or produced by a company across various product lines.
The document discusses major product line strategies including expanding product mix by increasing product lines, contracting product mix by eliminating or simplifying product lines, altering existing products through redesign or new packaging, positioning products for certain customer groups and outlets, trading up or down by adding higher or lower priced products, and differentiating products through advertising their unique features. Product mix includes all products, brands, and items offered for sale or produced by a company across various product lines.
A product line possesses the following characteristics:
01 A group of products closely related to each other. 02 They are intended for same uses or they function in similar manner. 03 They may possess similar physical characteristics.
02 Contraction of Product Mix
A. Eliminating a complete line. Phasing out a deadwood product line.
B. Simplifying assortment within a line. Decreasing number of styles, sizes, colors or other product mix depth or breadth. This strategy is implemented if market demand is very low and cannot even offset maintenance costs.
03 Alteration of Existing Product
Redesigning of an industrial product or new packaging
design for consumer products
04 Positioning of the Product
04 Sold to the same customer group. 05 Marketed through the same types of outlets with given price lines. Product mix includes: 01 The complete list of all products offered for sale or produced by a company. 02 It is a composite of all products, brands, or items within each product line.
This is the consumers perception of a product, its
image against competitors products and other products being sold by the same company.
05 Trading Up and Trading Down
Trading up is adding high-priced, well-known brand in
order to increase sales of existing low-priced items. Trading down is adding low-priced products in order to increase sales of existing high-priced items.
06 Product Differentiation
Product differentiation involves creation of consumer
awareness about the different features of a product. This consumer education about the product can be effectively achieved by using advertising as a tool.
References: Alminar-Mutya, R. F. (2007). Elements of Marketing (Fourth ed.). Mandaluyong: National Book Store.
