(f) Other characteristics that influence the rate of adoption are: g120 Costs; g120 Risk and uncertainty; g120 Scientific credibility; and g120 Social approval. 5.5 Managing Product Offerings Product is the first and most important element of the marketing mix. Product strategy calls for making coordinated decisions on product mixes, product lines, brands, and packaging and labelling. In planning its market offering, the marketer needs to think through the five levels of the product: (a) Core benefit; (b) Basic product; (c) Expected product; (d) Augmented product; and (e) Potential product. Products can be non-durable goods, durable goods or services. In the consumer goods category, products are convenience goods (staples, impulse goods, emergency goods), shopping goods (homogeneous and heterogeneous), specialty goods or unsought goods. The industrial goods category has three subcategories: materials and parts (raw materials and manufactured materials and parts), capital items (installations and equipment), or supplies and business services (operating supplies, maintenance and repair items, maintenance and repair services, and business advisory services).
STUDY GUIDE BMMK5103 Marketing Management 49 5.6 Product Mix Decisions Most companies sell more than one product. A product mix can be classified according to width, length, depth and consistency. These four dimensions are the tools for developing the company’s marketing strategy and deciding which product lines to grow, maintain, harvest and divest. To analyse a product line and decide how many resources should be invested in that line, product line managers need to look at sales and profits and market profile. A product mix consists of various product lines. A company’s product mix has a certain width, length, depth and consistency. This is what we call product mix dimension. Therefore, the dimensions are: The width of a product mix refers to how many different product lines the company carries. The length of a product mix refers to the total number of items in the mix. The depth of a product mix refers to how many variants are offered of each product in the line. The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels or some other way. 5.7 Product Line Decisions In offering a product line, companies normally develop a basic platform and modules that can be added to meet different customer requirements. Product line managers need to know the sales and profits of each item in their line in order to determine which items to build, maintain, harvest, or divest. In deciding the product line, the company needs to make several decisions.
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