BCOR 350 10.2

product item
specific version of a product that can be designed as a distinctive offering among an orgs products
product line
a group of closely related product items
product mix
all the products an org sells, each product item in the product mix may require a separate marketing strategy
benefits of organizing related items into product lines
advertising economies of scale, package uniformity, standardized components, efficient sales and distribution, equivalent quality
product mix width
breadth, the number of product lines an org offers, firms increase the width of their product mix to diversify risk and to capitalize on established reputations
product line depth
the number of product items in a product line, firms increase depth to attract buyers with different preferences/increase sales&profits by further segmenting the market/capitalize on economies of scale in production&marketing/even out sales patterns
adjustments to product items, lines, and mixes
firms change product items/lines/mixes to take advantage of new technical/product developments/changes in the environment
this is done by (modifying products/repositioning products/extending or contracting product lines)
product modification
changes one or more of a products characteristics (quality modification, functional modification, style modification)
planned obsolence
the practice of modifying products so those that have already been sold become obsolete before they actually need replaced, some argue as wasteful, marketers say customers favor modifications and decide when styles are obsolete
involves changing consumers perceptions of a brand, motivated by declining sales/changes in the social environment
product line extension
adding additional products to an existing product line in order to compete more broadly in an industry, can be overextended when (some products dont contribute to profits bc low sales/cannibalization, manufacturing/marketing resources are disproportionately allocated to slow moving products, some items become obsolete bc new products)
Product line contraction
was to deal with overextension