This is known as feature positioning, as opposed to product positioning. Your business may consist of a number of product lines, which are groups of items featuring similar characteristics. You can buy dish soap in liquid, powder or gel form. This shows a strong focus on the customer. Thanks to Tony Elumelu foundation for the endeavor to keep opening the eyes of the budding entrepreneurs of Africa in a full exposure to business ecumenism. Image anchors are highly promoted products within a line that define the image of the whole line. If they are not encouraging, then the product idea may have to be reevaluated.
Depth: The depth of the product mix refers to how many varieties are offered of each product in the line. A company usually sells different types of products. For instance, a company may be selling health related items such as multi-vitamins tablet and magazines. In the hammer product line are claw hammers, ball peen hammers, sledge hammers, roofing hammers and mallet hammers. It is produced at a cost and is subsequently made available to the right audience at a price.
It refers to the number of versions offered for each product in the product line. The Product Mix — Product Mix Decisions 4 Dimensions of the Product Mix — 4 Product Mix Decisions Four important dimensions of a product mix can be identified. It helps in determining whether the new customers are worth of promotion cost or not. Customers may perceive the Norwegian Wood chair as highly desirable and hard to get. Attributes and brand image should give a product distinct appeal. Does the product fit into the current product mix? Companies with an effective product line can employ product line extension in order to reach new demographic customers in different geographic areas. Only if product mix decisions are taken on an ongoing basis, maximum value for customers can be created.
In other words, try to fill all of the Mellow Yellow orders, if possible. Since customer needs may change rapidly, product mix decisions need to be taken more than once at the beginning — product mix decisions are part of an ongoing process. Each of these product lines, in turn, consists of several sub-lines. Are the internal resources adequate? If you add lesser quality, lower priced items, it's called downward stretching. In this case, the average length of your company's product line is five. Ideas can be generated by chance, or by systematic approach.
If you suddenly introduce a product line of high-end merchandise, you run the risk of confusing your customers, as they may wonder if you're planning to make widespread changes to your product assortment. It often takes time and requires market research to develop a successful marketing mix. Your capacity labor hours is limited, so you need to make sure that every hour worked is as profitable as possible. When you add a new product within the current range of an incomplete line, this is referred to as line filling. Later on, the company's technology may allow the company to diversify into other industries and build the width of the product mix.
It has the advantage of ease of administering, but the disadvantage of inflexibility, particularly in times of inflation or unstable prices. How much customer should pay for a product? Just like length, companies sometimes report the average depth of their product lines; or the depth of a specific product line. A few years ago, the company made the decision to eliminate the breakfast sandwich business to focus on the core product: Coffee. Broader product line: A necessity to achieve success? The Marketing mix of the 4Ps- Product, Price, Promotion and Place being very crucial aspects of marketing that if well managed and manipulated will see the needs of the customers met and the goals of your business being attained. Free samples offered in the mall, taken home and interviewed over the telephone later. In this situation, differentiation becomes of the utmost importance for the success of any product.
How new and current items in the product mix are perceived, in the minds of the consumer, therefore reemphasizing the importance of New Product--need to communicate benefits Established Products--need to reinforce benefits Ideal Characteristics Need to introduce products that possess characteristics that the target market most desires, ideal. Here also, the company can charge a premium price for additional desirable benefits from features. Why so many different products? Therefore, businesses earn their profit off of the unplanned buying decisions by customers besides the loss leaders. These analyses, if positive can help set a strong stage for the product development plan. A product line is made up of product items which are individual units that have unique appearances, functions or price points.
Product definition: A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value. One reason for this was also that the breakfast sandwich smell clashed with the traditional signature coffee smell, thus taking away from the experience. Each approaches' results vary based on many factors including location, market, trends, etc. They may also add to their lines similar products that are of higher or lower quality to offer different choices and price points. With such, I get the feeling that venturing into a business does not require just a capital-acquiring business skills should come first. Also, each product has a different contribution margin per unit. A diversified product mix can target the maximum number of customers, however, such numbers of product lines requires much attention and focus as each product line targets different groups of consumers and involves individual strategy and management.
A close to reality prediction of this path may help the company relaunch or redesign an existing product or work on introducing a new one to the market. For instance, retailers will offer a bundle deal for purchasing a new computer with its accessories, such as keyboard and mouse pad. Small and upstart businesses will usually not have a wide product mix. For example you wouldn't buy a spreadsheet program that if it didn't perform basic math, so basic math is very important. Place: Pepsi has an extensive market presence which depends upon its well set distribution network. It is the actual item which is held for sale in the market. Product Planning refers to the systematic decision making related to all aspects of the development and management of a firms products including branding and packaging.