PRODUCT MIX

DECISION

A company’s product mix (also called product assortment) is

defined as the set of all product lines and items that a particular

seller offer for sale to buyers.

A company’s product mix can be described as having a certain

width, length, depth, and consistency.

Avon’s product-mix consists of three major product lines:

cosmetics, jewelry, and household items. Each product line

consists of several sub-lines

Example: cosmetics break down into lipstick, powder, and so on.

All together Avon’s product mix includes 1,300 items. A large

supermarket handles as many as 10,000 items, General Electric

manufactures as many as 25,000 items.

PRODUCT MIX DECISION

PRODUCT-MIX WIDTH AND PRODUCT-LINE LENGTH SHOWN

FOR P&GPRODUCT-MIX WIDTH

Detergents Toothpaste Bar soap Deodorant Diapers CoffeeIvory snow Gleem Ivory Secret Pampers Folger’s

Tide Crest Camay Sure Luvs Instant folger’sJoy Lava High point

Cheer Kirk’s Folger’s flakeOxydol ZestDreft SafeguardDash coast

CascadeDuz

Ivory liquidGaindawn

width - how many different product lines the company carries

length - the total number of items in its product mix.

depth - how many variants are offered of each product in the

line.

consistency - how closely relate the various product lines are

in end use, production requirements, distribution channels or

some other way.

The four dimensions of the product mix provide the handles

for defining the company’s product strategy

Product-mix planning is largely the responsibility of the

company’s strategic planners. They must asses, with

information supplied by the company marketer’s, which

product lines to grow, maintain, harvest and divest.

PRODUCT-LINE

DECISIONS

PRODUCT-LINE DECISIONS

A product mix is made up of various product

lines.

A product line is defined as 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.

BRANDS AND TRADEMARKS

A brand is a name, term, symbol, special

design

AMA definition

Benefits of Branding :

Identification

Encourage repeat sales.

Facilitates new product

introduction

A brand name

is the verbal part

of the brand.

A brand mark is the part of the brand that appears in the form of a symbol, design, distinctive coloring, or lettering. It is

recognized by sight but cannot be uttered or vocalized.

A trademark defined as a brand that is given legal protection

because, under the law, it has been appropriated tone seller.

One method of

classifying brands is on

the basis of who owns them

– producers or retailers.

For many years, National Brands have been used to describe brands owned by

producers, while private brands/Private labels for brands owns by retailers.

Lanham Act of 1964 Sets severe penalties for trademark infringement. The injured party can sue for triple damages and recovery of any profit.

BRANDS AND TRADEMARKS

A BRAND NAME SHOULD POSSESS AS MANY OF THE FOLLOWING CHARACTERISTICS AS POSSIBLE:

1. Suggestive of the product’s characteristics – Its benefits, use, or action.

Some names that suggests desirable benefits are Mr. Clean, Softee, Manila Pure,

Beauty Rest , and Carefree.

2. Easy to pronounce, spell, and remember. Some simple, one-syllable names

include Tide, Coke, Joy, raid and Axe.

3. Distinctive. Some companies begin their brand names with adjectives, like Allied

Bank and United Airlines, Distinctive brand names include Swatch, Avon, Nokia,

Coke and Porsche.

4. Adaptable to new products that may be added to the product lines. Nokia

is clearly a brand name for mobile phones. Ligo has always been known for

sardines, but when it expanded its line to soaps, the name lost its sales appeal.

5. Capable of being registered and legally protected. Generic names would

not meet this criterion. Example, the word “ice cream” used as a brand name

cannot by itself be registered and legally protected.