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Product Planning, Mix, and Development

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Presentation on theme: "Product Planning, Mix, and Development"— Presentation transcript:

1 Product Planning, Mix, and Development
Key Terms product planning product mix product line product item product width product depth product modification Objectives Describe the steps in product planning Explain how to develop, maintain, and improve a product mix

2 Product Planning Product planning making decisions about what features should be used in selling a business’s products, services, or ideas. These decisions relate to product features and services, such as: Packaging, labeling, and branding Warranties and support services

3 Product Mix Product mix includes all the different products that a company makes or sells. A retailer’s product mix is made up of all of the different products the store sells. The mix must be planned carefully because retailers cannot offer all the products that customers may want.

4 Product Items and Lines
Product line is a group of closely related products manufactured or sold by a business. Product item is a specific model, brand, or size of a product within a product line. Retailers generally carry several product items for each product line they sell. Companies will take advantage of a successful line by adding an item! This is called a line extension Companies will make changes to existing items. This is called a product modification

5 Product Width and Product Depth
Product width refers to the number of different product lines a business manufactures or sells. Product depth refers to the number of items offered within each product line.

6 Product Mix Strategies
Know this Concept Product Mix Strategies A product mix strategy is a plan for determining which products a business will make or stock. Some businesses will change their lines by modifying products, creating new ones, and/or dropping old ones. To determine its product mix, a business needs to: Identify its target market Identify its competitors Decide on the image it wants to project

7 Developing New Products
Know this Concept Developing New Products Critical to maintain and improve profitability New products (those less than five years old) account for about 35 percent of total sales for major consumer and industrial goods companies. 7 There are steps in new product development

8 Developing New Products
Know this on the test Developing New Products 7 steps in new product development Generating ideas Screening ideas Developing a business proposal Developing the product Testing the product with consumers Introducing the product (commercialization) Evaluating customer acceptance

9 Understand the process
Developing New Products

10 Assignment Work with a partner. Research one Automobile manufacturer Write down its Product Mix and Product Width Identify a specific Product Line and its Product Depth Identify a specific Product Item From an existing Product line Add your idea for a line extension or Add your idea for a product modification

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