Product-Mix Strategies Chapter 9 Chapter One Marketing’s Role in the Global Economy Product-Mix Strategies For use only with Perreault and McCarthy texts. © 2002 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

Marketing’s Role in the Global Economy Chapter Goals Chapter One Marketing’s Role in the Global Economy Difference between product mix and product line Product-mix strategies - positioning, expansion, alteration, contraction Trading up and trading down Managing products throughout a life cycle Planned obsolescence Style and fashion Fashion-adoption process For use only with Perreault and McCarthy texts. © 2002 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

Product Mix and Product Line The set of all products offered for sale by a company PRODUCT LINE A broad group of products for similar uses and with similar characteristics

Product Mix DEPTH PRODUCT MIX Variety of sizes, colors, models within a product line PRODUCT MIX BREADTH The number of product lines carried

Product Mix- Breadth and Depth

Positioning the Product COMPETITOR Differential advantage PRODUCT CLASS OR ATTRIBUTE Associated with attractive attribute High price/high quality or low price PRICE AND QUALITY

Product-Mix Strategies Expansion Contraction Alteration of existing products Trading Up and Trading Down

Product Life Cycle

Product Life-Cycle Stages

Length of Product Life-Cycle Product life-cycle variations

Life-Cycle Management Managing during Maturity Managing on the Rise Entry Strategies Surviving the Decline Introduction Growth Maturity Decline

Planned Obsolescence Technological Obsolescence Style Obsolescence

Fashion Adoption Process

Marketing’s Role in the Global Economy Key Terms and Concepts Chapter One Marketing’s Role in the Global Economy Product mix Breadth Depth Product line Product-mix expansion Line extension Mix extension Product alteration Product-mix contraction Trading-up Trading down Product life cycle Introduction stage Growth stage Maturity stage Decline stage Fad First-mover advantage Product abandonment Planned obsolescence For use only with Perreault and McCarthy texts. © 2002 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

Marketing’s Role in the Global Economy Key Terms and Concepts Chapter One Marketing’s Role in the Global Economy Technological obsolescence Style obsolescence Style Fashion Fashion-adoption process Fashion cycle Trickle-down theory Trickle-across theory Trickle-up theory For use only with Perreault and McCarthy texts. © 2002 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin