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9-1
Product-Mix Strategies
Chapter 9Chapter 9Chapter 9Chapter 9
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9-2
Chapter GoalsChapter GoalsChapter GoalsChapter Goals
• Difference between product mix and product line• Product-mix strategies - positioning, expansion,
alteration, contraction• Trading up and trading down• Managing products throughout a life cycle• Planned obsolescence• Style and fashion• Fashion-adoption process
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9-3
Product Mix and Product LineProduct Mix and Product Line
PRODUCT MIXPRODUCT MIXThe set of all products offered The set of all products offered
for sale by a companyfor sale by a company
PRODUCT MIXPRODUCT MIXThe set of all products offered The set of all products offered
for sale by a companyfor sale by a company
PRODUCT LINEPRODUCT LINEA broad group of A broad group of
products for similar usesproducts for similar usesand with similar characteristicsand with similar characteristics
PRODUCT LINEPRODUCT LINEA broad group of A broad group of
products for similar usesproducts for similar usesand with similar characteristicsand with similar characteristics
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9-4
BREADTH The number of product lines carried
Product MixProduct Mix
DEPTH
Varietyof
sizes, colors,
models within
a product
line
PRODUCT MIXPRODUCT MIXPRODUCT MIXPRODUCT MIX
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9-5
Product Mix- Breadth and DepthProduct Mix- Breadth and Depth
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9-6
Positioning the ProductPositioning the Product
COMPETITORCOMPETITORCOMPETITORCOMPETITOR
High price/high qualityor
low price
High price/high qualityor
low price
DifferentialadvantageDifferentialadvantage
Associated with attractive attribute
Associated with attractive attribute
PRODUCT CLASSPRODUCT CLASS OR ATTRIBUTEOR ATTRIBUTEPRODUCT CLASSPRODUCT CLASS OR ATTRIBUTEOR ATTRIBUTE
PRICE PRICE AND QUALITYAND QUALITY
PRICE PRICE AND QUALITYAND QUALITY
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9-7
Product-Mix StrategiesProduct-Mix Strategies
Alteration of Alteration of existing productsexisting products
Alteration of Alteration of existing productsexisting products
ContractionContractionContractionContraction
Trading Up andTrading Up andTrading DownTrading Down
Trading Up andTrading Up andTrading DownTrading Down
ExpansionExpansionExpansionExpansion
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9-8
Product Life CycleProduct Life Cycle
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9-9
Product Life-Cycle StagesProduct Life-Cycle Stages
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9-10
Length of Product Life-CycleLength of Product Life-Cycle
Product life-cycle variations
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9-11
Life-Cycle ManagementLife-Cycle Management
Entry Strategies
Managingon
the Rise
Survivingthe
Decline
GrowthGrowthIntroductionIntroduction MaturityMaturity DeclineDecline
Managingduring
Maturity
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9-12
Planned ObsolescencePlanned Obsolescence
TechnologicalObsolescenceTechnologicalObsolescence
StyleObsolescence
StyleObsolescence
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9-13
Fashion Adoption ProcessFashion Adoption Process
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9-14
Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts
• Product mix
• Breadth
• Depth
• Product line
• Product-mix expansion
• Line extension
• Mix extension
• Product alteration
• Product-mix contraction
• Trading-up
• Trading down
• Product life cycle
• Introduction stage
• Growth stage
• Maturity stage
• Decline stage
• Fad
• First-mover advantage
• Product abandonment
• Planned obsolescence
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9-15
Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts
• Technological obsolescence
• Style obsolescence
• Style
• Fashion
• Fashion-adoption process
• Fashion cycle
• Trickle-down theory
• Trickle-across theory
• Trickle-up theory