What are the product mix strategies??

Question

What are the product mix strategies??

Answer 1

A product line is a group of closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations. A product mix is all the products offered by an organization.

There are four stages in the life cycle of a product: introduction, growth, maturity, and decline. The stage a product is in helps determine marketing strategy. In the introductory stage, consumer awareness and acceptance of the new product are limited, sales are zero, and profits are negative because of research and development expenses for the product. Marketers focus on making consumers aware of the product and its benefits during the introductory stage. Sales increase rapidly and profits peak during the growth stage, then start to decline as new companies enter the market, driving prices down and increasing marketing expenses. During the growth stage, the firm tries to strengthen its position in the market by emphasizing the product's benefits and identifying market segments that want these benefits. Sales continue to increase at the beginning of the maturity stage, but then the sales curve peaks and starts to decline while profits continue to decline. This stage is characterized by severe competition and heavy marketing expenditures. During the decline stage, sales continue to fall rapidly, and profits decline and may become losses as prices are cut and necessary marketing expenditures are made.

Branding, packaging, and labeling identify or distinguish one product from others and thus are key marketing activities that help position a product appropriately for its target market.

Branding is the process of naming and identifying products. Identification may occur through a brand (a name, term, symbol, design, or combination that identifies a product and distinguishes it from other products), a brand name (the part of the brand that can be spoken and consists of letters, words, and numbers), a brand mark (the part of the brand that is a distinctive design), and/or a trademark (a brand that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by any other firm). Two major categories of brands are private distributor brands and manufacturer brands. Manufacturer brands are initiated and owned by the manufacturer to identify products from the point of production to the point of purchase. Private distributor brands, which may be less expensive than manufacturer brands, are owned and controlled by a wholesaler or retailer. Generic products have no brand name at all. Marketers may give each product within its complete product mix its own brand name or develop a family of brands with each of the firm's products carrying the same name or at least part of the name.

The packaging, or external container that holds and describes the product, influences consumers' attitudes and their buying decisions. A package can perform several functions, including protection, economy, convenience, and promotion.

Labeling, the presentation of important information on the package, is closely associated with packaging. The content of labeling, often required by law, may include ingredients or content, nutrition facts, care instructions, suggestions for use, the manufacturer's address and toll-free number, and other useful information.

Quality reflects the degree to which a good, service, or idea meets the demands and requirements of customers. Quality has become a key means for differentiating products in consumers’ minds.