Professional Documents
Culture Documents
Chapter 10
1-2
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
After studying this chapter you
should be able to:
• Understand the different characteristics
of a product mix.
1-3
After studying this chapter you
should be able to:
• Describe the limitations of the product
life cycle concept.
1-4
Product Mix
• Product Mix:
– The total assortment of products
and services marketed by a firm.
• Product Line:
– A group of individual products that
are closely related in some way.
• Individual Product:
– Any brand or variant of a brand in
a product line.
1-5
Product Mix Characteristics
• Product Mix Width:
– The number of product lines in the
product mix.
1-6
Product and Service Strategies
1-7
Individual Product Strategies
• Product Life Cycle (PLC):
– Describes the advancement of products through
identifiable stages of their existence.
Total
Market
Sales
Time
1-8
The Product Life Cycle
Total
Market
Sales
Time
1-9
The Product Life Cycle Concept
is Based on Four Premises
1-10
The Diffusion Process
Innovators
(2.5%)
Early Adopters
(13.5%)
Early Majority
(34%)
Late Majority
Innovators Early Adopters
Early
Majority
Late
Majority
Laggards
(34%)
1-11
The Diffusion Process
Early Late
Innovators Early Adopters Laggards
Majority Majority
"The Chasm"
1-12
PLC Stages and Characteristics
1-13
PLC Length and Shape
1-14
PLC Marketing Strategies
Stage Objective Marketing Strategy
1-15
Limitations of the PLC
1. The life cycle concept applies best to product
forms rather than to classes of products or
specific brands.
1-16
Product-Line Strategies
• Strategic Alternatives:
1. To increase the length of a
product line.
1-17
Increasing the Product Line
• Downward-stretch Strategy
• Upward-stretch Strategy
• Two-way-stretch Strategy
• Line-filling Strategy
1-18
Decreasing the Product Line
• Product Line Contraction:
– Firms must consider deleting products
when:
• They are not successful.
1-19
Product-Mix Strategies
1-20
Strategic Alternatives
Add New
Product Lines?
Delete Existing
Product Lines?
1-21
Branding Strategies
1-22
Ethical Issues in Product and
Service Strategies
• Is the product safe when
used as intended?
1-23
Ethical Issues in Product and
Service Strategies
• Is the product compatible with the
physical environment?
• Do any organizational
stakeholders object to the
product?
1-24