Product line series of related products desire to

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Product line - Series of related products Desire to grow o Growth potential is limited if a company focuses on a single product Enhancing the Company’s Market Position Optimal Use of Company Resources Exploiting the stages of the product lifecycle o Measure product mixes and make product mix decisions. Product Mix - Assortment of product lines and individual product offerings How is it measured? Width, Length, Depth Firms may decide to add to their mixes by purchasing product lines from other companies Line extension - Adding individual offerings that appeal to different market segments while remaining closely related to the existing product line o Product lifecycle. Introductory stage o Products in this stage might bring new technology to a product category o Lots of promotions! o Technical problems and financial losses are common Growth stage o Sales volume rises rapidly as new customers make initial purchases and early buyers repurchase the product Maturity stage o Sales of a product category continue to grow during the early part of this stage but eventually reach a plateau as the backlog of potential customers dwindles o Differences among competition are minor Decline stage o Innovations or shifts in consumer preferences bring about an absolute decline in industry sales o Extending a product’s lifecycle & why products get deleted (Strategies)
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Increasing frequency of use o Convincing current customers to buy a product more frequently boosts total sales even if no new buyers enter the market Increasing the number of users o Attracting new customers who have not previously used the product Finding new uses o New applications extend a product’s lifecycle Changing package sizes, labels, or product quality o New packaging and labels with updated images and slogans can help revitalize a product Eliminate marginal products to preserve limited resources Firms may carry unprofitable items to carry a complete product line Shortages or raw materials can prompt a firm to discontinue production Firm may drop products that don’t fit into the direction in which it plans to grow Chapter 12 Brand - Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from the competition’s Goal of branding is to create a competitive advantage o Something of value that your competitor’s don’t have Brands have a powerful influence on consumer behavior o Quality inferences o Repeat purchases 1. Types of Brands Generic products - Products characterized by plain labels, no advertising, and the absence of brand names Manufacturer’s brands - Brands name owned by a manufacturer or other producer Private brands - Brands offered by wholesalers and retailers Captive brands - National brands sold exclusively by a retail chain o Maybe considered a private-label by some Family brand
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