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