Presentation on theme: "Product Planning, Mix, and Development"— Presentation transcript:
1 Product Planning, Mix, and Development Key Termsproduct planningproduct mixproduct lineproduct itemproduct widthproduct depthproduct modificationObjectivesDescribe the steps in product planningExplain how to develop, maintain, and improve a product mix
2 Product PlanningProduct 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 brandingWarranties and support services
3 Product MixProduct 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 extensionCompanies 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 thisConceptProduct Mix StrategiesA 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 marketIdentify its competitorsDecide on the image it wants to project
7 Developing New Products Know thisConceptDeveloping New ProductsCritical to maintain and improve profitabilityNew products (those less than five years old) account for about 35 percent of total sales for major consumer and industrial goods companies.7There are steps in new product development
8 Developing New Products Know thison the testDeveloping New Products7steps in new product developmentGenerating ideasScreening ideasDeveloping a business proposalDeveloping the productTesting the product with consumersIntroducing the product (commercialization)Evaluating customer acceptance
10 AssignmentWork with a partner. Research one Automobile manufacturerWrite down its Product Mix and Product WidthIdentify a specific Product Line and its Product DepthIdentify a specific Product ItemFrom an existing Product lineAdd your idea for a line extension orAdd your idea for a product modification