Relevant information includes the revenues and costs which are directly related to a product line or department. It can be argued that product decisions are probably the most crucial as the product is the very epitome of marketing planning. The following seven phases can be identified in a variety of product design and development projects. Chapter 1 product design and development in the industrial.
How to make good decisions in new product development. Product mix if a company is having variety of products, then the complete range of products within than company is called product mix. Product decisions revolve around decisions regarding the physical product size, style, specification, etc. Four important dimensions of a product mix can be identified. We will discuss about how a company manages its products. Jun 03, 2015 product management lesson 2 product line decisions and branding published on june 3, 2015 june 3, 2015 24 likes 0 comments. Product line group of products that are closely related because. Equimarginal returns and opportunity cost comparative advantage. Product offerings and product line length dynamics stanford. Product management lesson 2 product line decisions and branding. A product line is a similar group of products that are sold by the company under the same brand. Thus, product line width is a depiction of the number of product lines which a company has. This appendix will also provide direction with regard to reporting product infusion on the cibmtr infusion form 2006. Businesses employ different strategies when marketing products compared to services.
Stages of product development a product usually starts as a concept which, if feasible, develops into a design, then a finished product. Product mix decisions width, length, depth and consistency. Linefilling and linepruning strategies can take place, depending on whether there is a perceived void in the product line, or whether an existing product in the line becomes obsolete or unprofitable. Get an answer for please tell me the example of product line, product mix, product extension and product filling of the particular company. A companys product mix has the certain width, length, depth and consistency. Belongs to a single manufacturer shares similar attributes serves the common general purpose but. Similarly, product lifecycle management plm integrates people, data, processes and business systems. Ch8 managing products, product lines, brands, packaging. Concepts of risk and uncertainty types of uncertainty in agriculture anagerial decisions to reduce risks in production process.
Product decisions or policy and strategy are concerned with the management of the products product portfolio and brand management a product is any offering to the market for attention, acquisition, use or consumption that might satisfy a need. This level of product planning cant be left to just the engineers, otherwise it will be like the great car that ford couldnt sell. Expanding the product line is the second one of the product line decisions. Product management lesson 2 product line decisions and. Product positioning is a strategic management decision that determines the place a product should occupy in a given market its market niche. Marketers must determine the assortment of products they are going to offer consumers. A product line in business is a group of related products under the same brand name that is manufactured by a single company. Determining whether to create, expand or retire product lines is part of the overall product line strategy.
Product mix decisions arise as soon as an organization has several product lines. If austin appliances eliminates a product line, total allocated fixed. Product line decision free download as powerpoint presentation. However, the product line is a subset of the product mix. We consider a multiproduct monopolists product line and pricing decisions under the explicit assumption of two status externalities.
After having taken a look at the product line decisions, product mix decisions need to be discussed. If you continue browsing the site, you agree to the use of cookies on this website. Product decisions or policy and strategy are concerned with the management of the products product portfolio and brand management. Discuss the various product line decisions marketers make and how a company can expand its product line a product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. These benefits are communicated to and delivered by product attributes such as quality, features, style and design. This 2001 report provides a practical introduction to product line requirements modeling. The remainder of this survey is structured as follows. Product mix a product mix is the set of all products and items that a particular seller offers for sale. Product definition a productservice is the most important component of the marketing mix being the centre of focus as the offer to the market. Thus, taking the above example, if there are 4 product lines within the company, and 10 products within each product line, than the product line width is 4 only. The variables of the model arethe marketingmixelements foreachpro.
Jul 01, 2019 trying to find a market for your product, before you know the market exists, is a practically guaranteed recipe for failure. A decision whether or not to continue an old product line or department, or to start a new one is called an addordrop decision. Production possibility curve, iso revenue line and optimum combination of outputs. When the buyers are sufficiently heterogeneous in their product valuations, the creator should offer a line of products with different levels of product quality. Decision to add or drop product line or department example. Pdf a model for product line decisions researchgate. In section 2, we give a short introduction to software product lines using a running example and we present an overview on important software analysis that have been applied to soft. Normally a product line is managed by a group of persons one person product. The first of the product mix decisions refers to the product mix width. Multiproduct pricing and product line decisions with status. The aim of this study is to determine the impact of the most used tools of sales promotion in retail sector such as. Jul 23, 20 trading up adding a high priced prestigious product to the line so as to increase the sales of the existing low priced product. Apr 06, 2012 a decision whether or not to continue an old product line or department, or to start a new one is called an addordrop decision. Mar 14, 2020 the width of the product mix is equal to the number of product lines within a company.
The definitive guide to product portfolio management try smartsheet for free making and managing strategic decisions about new and existing products can make or break an organization. For instance, a company might want to maintain longer product lines to protect against economic swings. Product line analysis is part of product line development. A product line is a group of products that are closely related to each other by function. Product line is a group of product items that can satisfy the same needs and wants, they have more or less similar features. A company may sell multiple products under one product line, and it can also have multiple product lines under its brand. Aug 03, 2014 product mix and product line slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Definitive guide to product portfolio management smartsheet. Product decisions involve product mix total group of products offered by. Decisions regarding the product, price, promotion and distribution channels are decisions on the elements of the marketing mix. Individual product decisionprinciples of marketing read. Urban and others published a model for product line decisions find, read and cite all the research you need on researchgate. Download as ppt, pdf, txt or read online from scribd. Product design and development is a complex process that involves extensive engineering considerations as well as management decisions based on the overall vision for the product.
The width is all about the number of different product lines the company carries. Line filling means adding more items within the present range of the line. Normally a product line is managed by a group of persons one person product manager to manage product line. Both of these product line decisions involve adding items to the line. Decisions at the productmix level represent the highest order decisions made by the company constraining all the subsequent lower order decisions and identifying the busi ness that the company operates.
Themodeldevelopedinthispaper isa single period mathematicalmodel ofa givenproduct line. The basic product policy strategy issues at the product line level cluster around the following questions. These state specific living will forms are in word. A product line is a group of related products under a single brand sold by the same company. Physical object, service, person, place, organization, idea. A product line is a group of products that are closely related manufactured by a single company. Analysis strategies for software product lines 3 we refer the reader to a recent survey benavides et al. Definition of product the intention of this appendix is to define the term product, and provide several examples of infusions using single and multiple products. For example, patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc.
Therefore, all the products offered under all the products lines by the firm is their overall product mix. In the managing products tutorial we will extend the discussion to look at the key issues in managing product decisions. A product item refers to a unique version of a product that is. Pricing decisions pricing decisions emba 5412 fall 2010 minimum transfer price the minimum transfer price in many situations should be. A companys product mix refers to the total number of products that are offered for sale. Apr 08, 2020 a product mix is a group of everything a company sells. Product line analysis applies established modeling techniques to engineer the requirements for a product. The width of a product mix refers to how many different product lines the company carries. The range of products offered by a firm is a critical strategic decision that will determine how the firm and their brands compete in the marketplace and the overall positioning of the brand. In this part of the principles of marketing tutorials we take a close look at the key concepts all marketers should consider when faced with product decisions. Managing product line and product mix free download as powerpoint presentation. As a physical product, marketers need to consider packaging, labelling and branding involved in marketing the. The specific features that are a part of the product. A product line is too short if profits can be increased by adding items.
Traditionally, most decision making in product development is experienced based and intuitive. In the present paper, reputation is approached as an idea involving status. Definition of product center for international blood and. The report describes product line analysis in the context of product line development and shows how a requirements model is built based on object modeling, usecase modeling, and featuremodeling techniques. This paper studies the optimal product and pricing decisions in a crowdfunding mechanism by which a project between a creator and many buyers will be realized only if the total funds committed by the buyers reach a specified goal. This is related to all the product mix and line decisions we have to take in a. Product and pricing strategies programs, courses aiu. Before turning to the product mix decisions, we first have to know what the product mix. Product line depth refers to the number of products in. The impact of promotional tools on consumer buying behavior. Multiproduct pricing and product line decisions with. Once opened, you can then save and edit on your computer. A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlet, or fall within given price ranges.
Decisions on a productline level important and complex decisions are also made at the product line level, which tend to determine the length of a companys product mix. If austin appliances eliminates a product line, total allocated fixed costs are assigned to the remaining product lines. Trading down introducing a low priced product to the prestigious line so as to cater increased demand. Various studies routinely report that 30 35% of products introduced to the market end up failing, even when the product is simply a line extension of an existing brand, or a new brand introduced in a category where the firm already has a successful product. A product line refers to a unique product category or product brand a company offers.
Product line depth refers to the number of products in a companys specific product line. Application, approval, and decision information and supporting documents related to energy resource activity. Product line decisions building a strong product line. Companies sell multiple product lines under their various brands. Oct 28, 2019 a product line is a similar group of products that are sold by the company under the same brand. Product decisions marketing mix describes how a business uses and manipulates the 4ps to market their product. Many new product marketers fall for this because they believe their product rocks. Pdf abstract despite the importance of product line management as a competitive tool, empirical research addressing the determinants of firm product. The infusion form 2006 must be submitted for each product.
Product management is an organisational function within a company dealing with new product development,business justification, planning, verification, forecasting, pricing, product launch, and marketing of a product or products at all stages of the product lifecycle. Trading up adding a high priced prestigious product to the line so as to increase the sales of the existing low priced product. The product life cycle successful goods and services, like people, pass through a. In offering a product line, companies normally develop a basic platform and module that can be added to meet different customer requirements. Ppt product decisions powerpoint presentation free to. Product mix and product line understanding product length. A useful tool used by marketers in making product decisions is the product life cycle. Individual product and service decisions customer relationships. This is related to all the product mix and line decisions we have to take in a companys marketing department. Product decisions are based on how much the organisation has to adjust the product on the standardisation adaptation continuum to differing market conditions.
But what is a product mix, and what product mix decisions are to be taken. Developing a product or service involves defining the benefits that it will offer. Product is critical element of marketing mix anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need. Decision analyst offers a range of producttesting services to help ensure that the new product will be successful. Product definition a product service is the most important component of the marketing mix being the centre of focus as the offer to the market. Managing product line and product mix business market. A product line is that combination of products which. What is meant by product line, length, breadth, consistency and depth. For example, hul in india is having different product line like laundry, personal care, etc. A product mix is a group of everything a company sells. The product line length can be influenced by company objectives and resources. An addordrop decision must be based only on relevant information.
684 635 139 985 749 1395 523 1104 295 63 479 1504 1040 824 206 1434 187 436 1479 673 418 767 1420 1401 508 886 1601 54 422 981 526 356 160 387 380 35 921 1485 708 1202 894 946 693