Product mix strategies, Marketing Management

Product mix strategies:

company has several major strategic at its disposal, with respect to the width, depth and consistency of its product mix. One major management aspect involved in the product policy is the decision concerning product mix. The product mix is one of the elements in the product policy. The more important now a days since most of the manufactures are diversifying their products.  The following strategies are generally employed by the producer or wholesaler of the product:

1.       Expansion of the product mix: it is also referred to as diversification. A firm may expand its present product mix by increasing the number of product lines or increasing the number of product items within the same line. New lines may be the related or unrelated to the present product. For instance, a provision store may add drugs, cosmetics, baby foods, dry fruits etc.

2.       Contraction of product mix: in certain circumstances, the management has to drop the production position is created in or unprofitable products. A firm may either eliminate an entire line or simply the assortment within a line this is termed as contraction of product mix.

3.       Alteration of the existing products: as an alternative to developing a completely new products management should take a fresh look at the company's existing products. Often, improving an established product can be more profitable and less risky in developing a completely new one alteration may be made in the designs, size, colour, packaging, quality etc.

4.       Positioning of the product: when a product can offer satisfaction in the manner the buyer gets, a strong position is created in the market. The product's position is the image which that product projects in relation to rival activities. A product's features will attract the customers or prove attractive to the customers. The positioning of the product is attained by:

  1. Product definition
  2. Market segment; and
  3. Market aggression. 

There is a match between the product attributes and consumer expectations.

Trading up and trading down: trading up refers to adding of higher priced and more prestigious of their existing line, in the hope of increasing the sales of existing low priced products. In other words, when the marketer has already gained a good reputation through the marketing his low priced products in the initial stages and later on introduces high prices products, it is termed as trading up. For instance, a factory marketing terry cotton is trading up by introducing polyester. Trading down is opposite to trading up. A company is said to be the trading down, when it adds a lower priced item to its line of prestige products in the hope that people promote who cannot afford the original products, will want to buy the new one, because it carries some of the status of the high priced product.

Product differentiation and market segmentation: when there is a fundamental difference between one the product to another, there will be a product differentiation. The product difference involves developing and promoting an awareness of differences between the advertises products and the products of others. The purpose of this differentiation is to make one's product different from those of other competitions. A market consists of buyers and buyers who differ in one or more respects. They differ in their wants, resources, geographical, locations, buying attitudes, buying practical's etc. again buyers can be grouped in terms of sex, education, income, level, etc. this grouping of the buyers (segmentation the market) is said to be the market segmentation. That is, grouping the buyers, based on the income, age, education, etc, is called market segmentation.

Posted Date: 9/19/2012 6:42:44 AM | Location : United States

Related Discussions:- Product mix strategies, Assignment Help, Ask Question on Product mix strategies, Get Answer, Expert's Help, Product mix strategies Discussions

Write discussion on Product mix strategies
Your posts are moderated
Related Questions
Why is ensuring important for marketers? Ensuring the important for marketers in marketing : Marketers require ensuring that when adding benefits to a product, the cost

Characteristics of the New or Morden concept or product oriented concept of the marketing: Main characteristics of this concept of marketing are as follows: 1.      Accor

Question: By the early 70's you realised the market for toys in the US is about to change. What strategies would you recommend for the future (next 10 years) in terms of new produc

1.  What kind of sales force model do you think will work best for your new product/service, and why? 2.  How will your salespeople be compensated, and how might you organize th

the various approaches that are followed by FMCG companies in test marketing

a) Use the simplified difference quotient method to find g''(x) for g(x)= (2)/(1+2x) b) Determine an equation for the tangent line to the graph of g in part a) at x=0 c) Give th

1.Considering the concept of product life cycle, where would you put video games in their life cycle? 2. Should video game companies continue to alter their products to include oth

Question 1: There is an ongoing debate between "standardization" and "adaptation" pertaining to global advertising. Critically evaluate the different sides of the arguments in

Explain about the push strategy in briefly. A pushstrategy comprises convincing trade intermediary channel members to “ push ” the product during the distribution channels to t

Question 1: Warigon is a retail company and they want to automate the payment system. Consider that you are the design engineer of that company. What are the factors that yo