marketing indicator 3.03 employ product-mix strategies to meet customer expectations
TRANSCRIPT
![Page 1: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/1.jpg)
Marketing Indicator 3.03Employ product-mix strategies to meet customer
expectations.
![Page 2: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/2.jpg)
The Product Mix Product Mix –particular
assortment of products that a business offers
All the types of products a company makes or sells
Some companies have different brands for different markets
Coca-Cola has different drinks for sparkling beverages, water, juice, performance, coffee, tea, and international flavors.
![Page 3: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/3.jpg)
Parts of the Product Mix
Product Item – each individual good, service, or idea that a business offers specific model, brand, or size of a product
within a line
Product Line – group of closely related products items manufactured by a business
Ex: P&G has over 250 products within 21 product lines
Dish care is a product line
Cascade, Dawn, Joy, & Ivory are items
![Page 4: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/4.jpg)
Product Mix Dimensions
Width – refers to the number of product lines a company carries.
Narrow Product Mix- limited number of product lines
Broad Product Mix- offers many product lines
Depth– refers to the number of products and the assortment of sizes, colors, and models offered in a company’s product lines
Deep Product Mix- offers many items within the product line
Shallow Product Mix- offers few items within the product line
Consistency- refers to how closely a company’s product lines are related in terms of:
End use
Methods of distribution and production
Target market(s)
Price Range
![Page 5: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/5.jpg)
Advantages of Broad vs. Narrow Product Mix
Narrow Product Mix
Allows company to be more specialized
More efficient producers
Concentrate marketing efforts on a few product lines
Broad Product Mix
Provides business with many opportunities to make sales
Appeals to customers with a variety of needs
Promotes one-stop shopping
Reduces costs of goods
![Page 6: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/6.jpg)
Advantages of Deep vs. Shallow Product Mix
Deep Product Mix
Meet the needs of a variety of consumers
Use a range of prices
Compete effectively
Shallow Product Mix
Helps a business to control costs
Helps to ensure a profit
![Page 7: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/7.jpg)
Product Mix Dimensions
Product Width – number of different product lines
CONTRACTING
Ease on management
Cost effective
Simplicity
Consistency
![Page 8: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/8.jpg)
Identify reasons that a business would offer a broad product mix.
Product Width – number of different product lines EXPANDING
Reach all marketsCompetitive advantage
Ex: Red Lobster specializes in seafood, but offers chicken and steak to broaden their product mix.
![Page 9: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/9.jpg)
Identify reasons that a business would offer a deep product mix.
Product Depth – number of items offered within each product line
EXPANDINGVarietyQuantity
Ex: Kohl’s carries various quantities of sizes, colors, & styles of Levi Jeans.
![Page 10: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/10.jpg)
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.
![Page 11: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/11.jpg)
Explain the importance of a business’s product mix.
Businesses must plan their product mix carefully because they cannot offer all the products that customers may want.
They should be a profitable market for product offered by a company
![Page 12: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/12.jpg)
Describe alteration product-mix strategies.
Alteration of Existing Products: Improve an established product
with new design, new package, new uses.
Ex: Jeep offering 4 doors
![Page 13: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/13.jpg)
Describe trading up / down product-mix strategies. Trading up: Adding a higher-priced
product to a line to attract a higher-income market and improve the sales of existing lower-priced products.
Trading down: Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.
![Page 14: Marketing Indicator 3.03 Employ product-mix strategies to meet customer expectations](https://reader036.vdocuments.site/reader036/viewer/2022062519/5697c00d1a28abf838cc98e1/html5/thumbnails/14.jpg)
Describe positioning product-mix strategies. Positioning – actions marketers take to
create a certain image of a product in the minds of the customers• In Relation to a Competitor
• In Relation to a Product Class or Attribute
• In Relation to a Target Market
• By Price and Quality
• Difficult to change