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Involves making decisions about those features that are needed to sell a businesss products, services, or ideas
Product Mix
Includes all the different products that a company makes
Same brand, related product (Tim Horton coffeemaker) Same brand, unrelated product (Swiss Army watch) Different brand, unrelated product (Pepsi & KFC) Different brand, related product (P&G adds Luvs diapers; already makes Pampers)
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Product-Mix Contraction:
Eliminate an entire line or reduce assortment within it. Pruning to reduce similar brands. Dump unprofitable or indistinct brands.
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Product Mix
Product width the number of different product lines a company has Product depth number of product items offered within each product line
Product line-2 Bath Soaps Lux Lux International Lifebuoy Pears Liril Dove Breeze Rexona
Lipton Green Label Brooke Bond Red Label Bru Taj Mahal Taaza Super Dust
Profit 0 Loss
Time in years
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length of the life cycle will vary across markets; some are quite short and may be getting shorter some fads have very short life cycles, while other products stay at maturity for years in high-tech markets, life cycles are very short some products do not make it through all four stages; they may fail in introduction the life cycle must be considered in relation to a specific market; stage may 10 - 18 vary across markets
Successful life-cycle management requires predicting the shape of the curve and then successfully adapting strategies at each stage. when to consider entering the market how to manage to capitalize on growth it is possible to develop strategies that will extend the maturity stage; modify the product, devise new uses, or design new appeals
greatest challenge comes at the decline stage 10 which may result in product abandonment - 19
Time in years
Time in years
Aggregate sales
Time in years
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Style: A distinctive manner of construction or presentation in any art, product or endeavour. Fashion: Any style that is accepted and purchased by successive groups of people over a long period of time.
Fashion-Adoption Process
Series of buying waves as a given style is popularly accepted by one group after another. Three theories of fashion adoption: Trickle-downa given fashion flows down through several socioeconomic levels. Trickle-acrossthe fashion moves horizontally and simultaneously within several socioeconomic levels. Trickle-upa style first becomes popular at lower levels and then flows upward.
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TRICKLE-ACROSS
TRICKLEDOWN
Medium-priced department stores and specialty stores
TRICKLE-ACROSS
Discount stores
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