MARKETING FINAL EXAM NOTES
CHAPTER 10- PRODUCT, BRANDING, AND PACKAGING DECISIONS
* Product Mix and Produce Line Decisions (2 questions for this topic) -
Product Mix: Complete set of all products offered by a firm. Product mix consists of:
Product lines- groups of associated items that consumers use together or think of as part of a group of similar products.
Product mix breadth represents a count of the number of product lines offered by the firm.
Product line depth equals the number of products within a product line.
Decision to expand or contract product lines depends on industry, consumer and firm level factors.
Industry Factors- firms expand number of product lines (breadth) when it’s easy to enter the specific market or when there is a large market opportunity. When firms add new lines to their mix, they usually earn a lot of sales and profits. However, too much breadth in a mix becomes costly to maintain, and too many brands can weaken the firm’s reputation.
Why do firms change product mix depth or breadth?
Firms change their product mix breadth by either adding to or deleting entire product lines.
Increase Breadth add new product lines to capture new or evolving markets and increase sales.
Decreases breadth delete entire product lines to address changing market conditions or meet internal strategic priorities.
Increase depth: changing consumer preferences or preempt competitors while boosting sales. Firms add new product lines to capture new markets. E.g.: Band-Aids- so much variety for different scrapes.
Decrease depth: delete products within a product line to realign the firm’s resources.
Breadth- how many columns
Depth- how many types in each column
Line Decisions: Example: Banks have different types of checking and savings accounts for their customers.
* Branding- Value of Branding for the Customer and the Marketer-
Brands facilitate purchases: Brands are easily recognized and because they signify...