All of these product lines when grouped together form the. Stretching the product line the marketing study guide. Product line depth refers to the number of products in a companys specific product line. And with so many options in most markets today, branding is more important than ever. Stretching the product line again if we use the apple example above, in the mobile phone market apple only offers smart phones of high quality. Line stretching occurs when a company lengthens its. Product line decisions building a strong product line. Ch8 managing products, product lines, brands, packaging. Online marketing is widely practiced strategy of advertising or promoting sales and name of the business. Before online marketing channels emerged, the cost to market products or services was often prohibitively expensive, and traditionally difficult to measure. The product lines may range from one to many and the company may have many products under the same product line as well.
A product line is a group of related products under a single brand sold by the same company. The marketing mix, in its general form, includes decisions and activities of business firms in the areas of product policy, channel policy, promotional policy, and pricing policy. The other three elements of the marketing mix are product, pricing, and promotion. A product line is a similar group of products that are sold by the company under the same brand. The product mix is a subset of the marketing mix and is an important part of the business model of a company. Following are some of the three product classification of industrial products.
Product line analysis is part of product line development. Distribution or place is one of the four elements of the marketing mix. Consumer preferences and productline pricing strategies. Benefits of a product line extension the marketing study guide. If they were to offer a basic smart phone they would be stretching their product line downward that is, taking it beyond the standard offering and introducing types of products that would appeal to.
A product line is a number of products grouped together based on similar characteristics. In the last ten years, the product management role has expanded its influence in technology companies. Difference between product marketing and service marketing. Managing product line and product mix business market. Companies also allocate a big amount of money to ensure that the product. Benefits of a product line extension the marketing study. Line stretching occurs when a company lengthens its product line beyond its current range. Selling your product if you follow the steps inside, you will be able to get past the idea. Sep 27, 2018 product strategy helps in deciding the basic elements of a product such as its marketing mix and its design. Oct 19, 2015 for example, if a lawn mower product is purchased for use around the house, then this lawn mower is categorized in the consumer product. Product lines are often part of a marketing strategy. The production plans and techniques used to create products vary widely from organization to organization and from one product line to another. Difference is only found in terms of colour, size, shape.
Demand modeling in product line trimming teckhua ho. Product mix pricing strategies in marketing study lecture notes. Marketing plan for a new product a study for a case company. Companies keep adding more products to attract buyers. The american manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large. The marketing mix, in its general form, includes decisions and activities of business firms in the areas of product policy. A company may sell multiple products under one product line, and it can also have multiple product lines. Specifically, they want to attract buyers who are familiar with the brand. Wise use of the online marketing strategies can take the business to unprecedented levels of success. Benefits of a product line extension expanding a firms product range through product line extension is a very common strategic decision. Online marketing is widely practiced strategy of advertising or promoting sales and name. Many companies now a day develop product line instead of a single product. Mar 14, 2020 the width of the product mix is equal to the number of product lines within a company.
Apr 08, 2020 the product lines may range from one to many and the company may have many products under the same product line as well. Marketers must often make product adjustments in order to keep the product competitive and continue to provide satisfaction to the buyer. In a product marketing mix, only 4 ps are applicable which are. How happy hound gets 90% of its sales online 10 things you can do today to boost your online. Along with product improvements, product line extensions form the majority of new product launches for established firms. When a business has a competitive advantage, it has an edge over its rivals. When the product is a part of product mix or portfolio, companies adopt five kinds of pricing strategies in marketing which are as under product line pricing this strategy is used for setting the price for entire product line. Line consistency refers to how closely related the products that make up the line are. The marketing mix established for one product may affect the sales of another product. At the same time, it also helps in targeting the product to the right segment, product line stretching etc. A marketing strategy exists when you combine all your marketing goals and objectives into one comprehensive plan.
Determining whether to create, expand or retire product lines is part of the overall product line strategy. Good branding can allow your specific products to stand out against what a competitor offers, and engender. Organization of sales force along geographical lines. Product line consists of closely related product items. Every product line covers a certain full part of total possible range. The strategic role of product management how a marketdriven focus leads companies to build products people want to buy 5 product management is a wellunderstood role in virtually every. Product line a companys product or group of products with similar characteristics. Managing product, product lines, brands, packaging 8 line stretching. How to launch your own beauty products start a cosmetic line. This article develops a mathematical product line model that analyzes the marketing strategy implications of product interdependency. A product line is a group of products that are closely related manufactured by a single company.
Productline managers must also consider the product life cycle for each product in the line, including introduction, growth, maturity, and decline. Along with product improvements, product line extensions form the. And with so many options in most markets today, branding is more important than. The objectives of the marketing strategy will be to enable the new products entry to the market more efficiently, gaining a market share with old and new customers faster than with the case companys. How happy hound gets 90% of its sales online 10 things you can do today to boost your online marketing. The main purpose however is to conduct a marketing plan for a new product that is being launched later this year by utilizing the most uptodate know how in marketing communications and the findings made in the market research. Jan 20, 2018 knowing the difference between product marketing and service marketing will help you understand the scope of marketing. Companies sell multiple product lines under their various brands.
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. In particular, product line extension can be made in two forms kotler, 2003. Those marketing products and services also have the ability to experiment with optimization to finetune their campaigns efficiency and roi. Urban and others published a model for product line. A mathematical modeling approach to product line decisions. Without a strong brand behind your product line, theres little to compel a buyer to choose you over another option. Line stretching occurs when the company stretches its product line beyond its. This strategy is used for setting the price for entire product line. Product lines may contain a subdivision of further product lines. The characteristic used to split products, will depend on the firm and its product strategy. Product line analysis product lining is the marketing strategy of offering for sale several related products. Companies also allocate a big amount of money to ensure that the product launch is wellbudgeted and that all the necessary requirements of the program will be provided. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries.
Product line firms may decide to split their product mix into groups known as product lines. Adwords online marketing the small business guide why you should be marketing online case study. A product line organization creates such a plan to ensure that the correct core assets are used appropriately to build a specific product in a specific way. But if the same lawn mower is purchased for use in landscaping business, then this is categorized as an industrial product. Distribution is the process of making a product or service available for the consumer or business user who needs it. The strategic role of product management how a marketdriven focus leads companies to build products people want to buy 5 product management is a wellunderstood role in virtually every industry except technology. This close relationship comes from several product attributes. Competitive strategies for new product marketing over the life cycle. Main characteristics of product line can be listed as.
Pdf consumer preferences and productline pricing strategies. Knowing the difference between product marketing and service marketing will help you understand the scope of marketing. All of these product lines when grouped together form the product mix of the company. A company may sell multiple products under one product line, and it can also have multiple product lines under its brand. Thus, product line width is a depiction of the number of product lines which a company has.
Difference is only found in terms of colour, size, shape, model, performance, weight, and capacity. The beginners guide to online marketing quicksprout. Online marketing differs from traditional marketing, which has historically included mediums like print, billboard, television and radio advertisements. A product line is a related set of products offered by a firm. Product branding gives the items in your store an identity within the marketplace. Guidelines for developing a product line production plan. Pdf a model for product line decisions researchgate. In a product marketing mix, only 4 ps are applicable which are product, price, place and promotion, but in the case of service marketing, 3 more ps are added to the conventional marketing mix, which are people, process and physical existence. For example, apple offers computers, smart phones, tablets, mp3 players, smart watches, and online services. Product line managers must also consider the product life cycle for each product in the line, including introduction, growth, maturity, and decline. What is product branding and why its essential in retail. 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. Product lines are created by companies as a marketing strategy to capture the sales of consumers who are already buying the brand. How to launch your own beauty products start a cosmetic.