Performance Indicator Explain the concept of product mix (PM:003, PM LAP 3) Level Specialist SCANS Information 5-8; systems 15; Basic Skills 1-2, 5-6; Thinking Skills 12 21 SST Century Skills Critical Thinking and Problem Solving Skills 1, 3; Communication and Collaboration 1 Objectives a. Define the following terms: product mix, product item, product line, width, depth, insistence, expansion, contraction, alteration, trading up, trading down, and positioning.
Product Line-group of closely related products manufactured by a business Product Item – specific model, brand, or size of a product within a line Product Mix- All the types of products a company makes or sells Product Width – number of different product lines Product Depth – number of Items offered wealth each product line EXPANDING- Variety and Quantity CONTRACTING- Cost effective, Satisfy small markets Trading up: Adding a higher-priced product to a line to attract a higher-income racket 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. B. Identify ways in which product lines can be organized. It can be organized by what target market It Is marketed for and also organized by what type of product It can be used for. FIFO Having different brands for different makers and being able to sell your product to many people. D. Identify reasons that a business would offer a narrow product mix. Ease on management Cost effective Simplicity Consistency e.
Identify reasons that a business would offer a broad product mix. Reach all markets Competitive advantage f. Identify reasons that a business would offer a deep product mix. Variety Quantity g. Identify reasons that a business would offer a shallow product mix. Cost effective Satisfy small markets h. 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 .
Describe advantages of expansion product-mix strategies. Broadens your target market and maybe profit if you get lucky J. Describe disadvantages of expansion product-mix strategies. You can go out in a crash and burn from not selling any of your product. K. Describe advantages of contraction product-mix strategies. L. Describe disadvantages of contraction product-mix strategies. M. Describe advantages of alteration product-mix strategies. Improve an established product with new design, new package, new uses. N. Describe disadvantages of alteration product-mix strategies. O.
Describe advantages of trading up 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 p. Describe disadvantages of trading up product-mix strategies. Can lose lower customers due to prices q. Describe advantages of trading down product-mix strategies. Trading down: from people who cannot afford the higher-priced product, but want the status. r. Higher clientele and make them not take you as seriously. s. Describe advantages of positioning product-mix strategies.
In Relation to a Competitor In Relation to a Product Class or Attribute In Relation to a Target Market t. Describe disadvantages of positioning product-mix strategies. By Price and Quality Difficult to change Sample Activity Product Mix: Access a company’s web site to identify its product lines; for each product line, identify several product items; include the product mix dimensions (narrow/broad, deep/shallow). Company web sites can be accessed directly (ex. Whim. Peg. Com)or via Inference at http://www. Inference. Com/bezel. Tm.
Print-screen the information obtained, and write a 500-word report about the company’s product ix and its advantages and disadvantages for the company. *Product mix, also known as product assortment, refers to the total number of product lines that a company offers to its customers. Prints: (paste screen shot here) http://www. Audios. Com/ 500-word Summary of product mix, advantages, and disadvantages: The main aim of the company is to enhance the customer experience for driving, thus providing top luxuries vehicles, therefore the products are also developed in the similar manner.
It can be said that Audio’s product are instantly recognizable. Although the prices of the arioso products from Audio are high, but it represents the unique and distinguishing attributes of the product as well. It can be observed that the target market of Audio is the people who are high earners like the executives, sports person and celebrities. Therefore the pricing of the various products from Audio is also high. Audio makes sure that the products are of high quality and that is the reason that an Audio was never ever recalled back from the market unlike Mercedes Benz being called back several times.
Audio also makes sure that it is making the vehicle with new tech features, which could separate the product from others. The different products of Audio can be found across the globe. Even in the developing countries some products of Audio can be seen. However the different parts of Audio products can be difficult to find especially in the underdeveloped regions, but it can be said that the products of the company are available within the reach of its target markets. The management has carefully developed this marketing strategy for the company, which ensures that products are within the reach of the target customers.
This enhances the image of the company. The management of Audio has worked very hard and put efforts in order to promote the product strategy and business across the globe. It can be seen that the company has made sure that its product is being recognized across the globe. Social networking to promote the products in different markets. Since the company tends to support adaptability, aggressive marketing campaigns on social networking as well. The key of Audio marketing strategy in order to overtake competitors is that the brand spent enormously on advertising at a same time, while competitors have to cut in economic time.