9.2 Product Items, Product Lines, and Product Mixes
3 min read•june 25, 2024
Companies offer a range of products to meet diverse customer needs. From individual items to product lines and entire mixes, businesses strategically craft their offerings to appeal to different market segments and maximize their market presence.
and depth play crucial roles in positioning and differentiation. Companies use various strategies like line filling and stretching to expand their offerings, capture new markets, and stay competitive. These approaches help businesses adapt to changing consumer preferences and market dynamics.
Product Offerings and Strategies
Product items, lines, and mixes
Top images from around the web for Product items, lines, and mixes
Product Portfolio Management | Principles of Marketing View original
Is this image relevant?
Marketing Mix Introduction | Introduction to Business View original
Is this image relevant?
Putting It Together: Marketing Function | Introduction to Marketing View original
Is this image relevant?
Product Portfolio Management | Principles of Marketing View original
Is this image relevant?
Marketing Mix Introduction | Introduction to Business View original
Is this image relevant?
1 of 3
Top images from around the web for Product items, lines, and mixes
Product Portfolio Management | Principles of Marketing View original
Is this image relevant?
Marketing Mix Introduction | Introduction to Business View original
Is this image relevant?
Putting It Together: Marketing Function | Introduction to Marketing View original
Is this image relevant?
Product Portfolio Management | Principles of Marketing View original
Is this image relevant?
Marketing Mix Introduction | Introduction to Business View original
Is this image relevant?
1 of 3
- represents a single, distinct product or service offering with unique features and benefits (iPhone 14 Pro Max, Nike Air Force 1 sneaker)
- consists of a group of closely related product items that share similar characteristics, target the same customer needs, or utilize the same distribution channels (Apple's iPhone line, Nike's Air Force 1 line)
- (or ) encompasses all the product lines and individual items that a company offers to its customers, representing the company's complete (Apple's mix: iPhones, iPads, Macs, Apple Watches, and services; Nike's mix: footwear, apparel, and equipment across various sports categories)
- Product items, lines, and mixes play crucial roles in a company's offering by allowing them to cater to specific customer needs, target different market segments, and diversify their product portfolio to appeal to a wider customer base
- helps companies identify distinct groups of customers with similar needs and preferences, enabling more targeted product development and marketing strategies
Product line length vs depth
- Product line length refers to the number of distinct product items within a single product line, with a longer line offering more choices and variety to consumers (Apple's iPhone line: iPhone 14, iPhone 14 Plus, iPhone 14 Pro, iPhone 14 Pro Max)
- represents the number of variations or options available for each product item within a line, such as different sizes, colors, features, or price points, allowing for greater personalization and targeting of specific customer preferences (iPhone 14 Pro available in 128GB, 256GB, 512GB, and 1TB storage capacities; color options: Deep Purple, Gold, Silver, and Space Black)
- The length and depth of a product line impact a company's by influencing customer perception
- A longer line can position the company as a comprehensive solution provider catering to diverse needs
- A deeper line can position the company as a specialist offering high levels of customization
- Companies must balance product line length and depth to optimize market coverage, effectively target customer segments, and maintain a strong market position
- strategies can be employed to distinguish offerings within a product line, creating unique value propositions for different customer segments
Strategies for product line expansion
- involves adding new product items within the existing range of a product line to capture untapped market segments, respond to competitor offerings, and maintain customer interest and loyalty (Apple introducing iPhone 14 Plus to offer a larger screen size option within the iPhone 14 line)
- extends a product line beyond its current range, either upward by adding premium, higher-priced products or downward by introducing more affordable, basic options
- attracts affluent customers and enables entry into new markets (Apple launching iPhone 14 Pro and Pro Max with advanced features and higher price points)
- captures price-sensitive customers and expands market share (Apple offering iPhone SE as a budget-friendly option within its iPhone product mix)
- Product line filling and stretching strategies help companies address evolving consumer needs, capitalize on emerging market opportunities, and maintain a competitive edge by offering a diverse range of products that appeal to various customer segments, ultimately driving sales growth and increasing market share
- strategies can be used to leverage existing brand equity when expanding product lines into new categories or markets
Product Lifecycle and Marketing Strategies
- The consists of four stages: introduction, growth, maturity, and decline
- Each stage requires different marketing strategies to maximize product success and profitability
- Companies must carefully manage their product portfolio to avoid , where new products compete with and reduce sales of existing products
- strategies can be employed at various stages of the product lifecycle to create additional value for customers and boost sales
Key Terms to Review (18)
Brand Extension: Brand extension is a marketing strategy where a company uses an established and successful brand name to introduce a new product or service that is related to, but different from, the original product. It allows companies to leverage the brand's equity, reputation, and customer loyalty to enter new product categories or markets.
Cannibalization: Cannibalization is a phenomenon that occurs when the introduction of a new product or service results in the loss of sales or market share of an existing product or service offered by the same company. This happens when customers switch from the existing product to the new one, leading to a decline in the sales and profitability of the older product.
Downward Stretching: Downward stretching is the process of extending a product line or product mix to include lower-priced, lower-quality items to cater to a wider range of customers and capture a larger market share. It involves introducing new products at the lower end of the price spectrum within a brand's existing product offerings.
Market Positioning: Market positioning refers to the process of establishing a distinct and desirable place for a product, service, or brand in the minds of consumers relative to competing offerings. It involves strategically aligning a company's product or service with the needs and preferences of a target market segment to create a unique and differentiated position in the marketplace.
Market Segmentation: Market segmentation is the process of dividing a broad consumer or business market into subsets of consumers or businesses that have, or are perceived to have, common needs, interests, and priorities. Marketers can then design and implement strategies to target these specific segments with offerings that match their unique needs and characteristics.
Product Assortment: Product assortment refers to the variety and depth of products a company offers within a particular product category or across its entire product portfolio. It encompasses the different types, sizes, styles, and models of products a business makes available to its customers.
Product Bundling: Product bundling is a marketing strategy where multiple products or services are packaged and sold together as a single unit, often at a discounted price compared to purchasing the items separately. This approach aims to provide customers with a convenient and value-added offering, while also potentially increasing sales and profitability for the business.
Product Differentiation: Product differentiation is the process of distinguishing a product or service from others in the market to make it more attractive to a particular target audience. It involves identifying and highlighting unique features, qualities, or benefits that set a product apart from its competitors, allowing it to command a premium price or gain a competitive advantage.
Product Item: A product item refers to a specific, individual product within a company's product line or product mix. It is the most fundamental unit of a company's product offering, representing a distinct good or service that is available for purchase by consumers.
Product Lifecycle: The product lifecycle refers to the stages a product goes through from its introduction to the market to its eventual decline. This concept is crucial in understanding the marketing and strategic decisions surrounding a product throughout its existence.
Product Line: A product line refers to a group of related products marketed under a single brand name by a company. It represents a collection of products that are closely linked in terms of their functions, target customers, or other characteristics, allowing the company to leverage economies of scale and optimize its marketing efforts.
Product Line Depth: Product line depth refers to the number of different items or variants within a single product line. It represents the breadth of options available to customers within a particular product category or brand. The depth of a product line is an important consideration in product portfolio management and can have significant implications for a company's marketing, production, and inventory strategies.
Product Line Filling: Product line filling refers to the practice of adding new products or variations to an existing product line in order to provide customers with a wider range of options and meet their diverse needs. It is a strategic approach to product portfolio management that aims to maximize the potential of a product line by continuously expanding its offerings.
Product Line Length: Product line length refers to the number of different products or items within a specific product line or category offered by a company. It is a crucial consideration in product portfolio management and marketing strategy, as it can impact factors such as production efficiency, inventory management, and the ability to meet diverse customer needs.
Product Line Stretching: Product line stretching refers to the strategy of a company extending its existing product line by adding more items or variations to the line. This allows the company to cater to a wider range of customer needs and preferences within its existing product portfolio.
Product Mix: The product mix, also known as the product assortment, refers to the total collection of products and items a company offers to its customers. It encompasses the variety, depth, and breadth of products a business provides to meet the diverse needs and preferences of its target market.
Product Portfolio: A product portfolio refers to the collection of all the products and services offered by a company. It encompasses the various product items, product lines, and product mixes that make up a business's overall product offering to its customers. The management and strategic planning of a company's product portfolio is a crucial aspect of marketing and product management.
Upward Stretching: Upward stretching refers to the process of expanding a product line or product mix by adding new, higher-priced and higher-quality items to the existing offerings. This strategy aims to target a more premium market segment and capture greater value from customers willing to pay more for enhanced features or superior quality.