()Product Line Decisions 1.Product line A group of products that are closely related because they function in a similar manner,are sold to the same customer groups,are marketed through the same types ofoutlets,or fall within given price ranges. 2.Product line length (1)The number of items in the product line (2)Managers need to analyze their product lines periodically to assess each product item's sales and profits and to understand how each item contributes to the line's overall performance (3)Is influenced by company objectives and resources. 3.Expand product line (1)Product line filling 1)Adding more items within the present range of the line 2)Reasons: Reaching for extra profits √Satisfying dealers √Using excess capacity Being the leading full-line company Plugging holes to keep out competitors 3)The company should ensure that new items are noticeably different from existing ones. (2)Product line stretching-Lengthen product line beyond current range 1)Downward To plug a market hole that otherwise would attract a new competitor To respond to a competitor's attack on the upper end Find faster growth taking place in the low-end segments 2)Upward 6
6 (二) Product Line Decisions 1. Product line A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. 2. Product line length (1) The number of items in the product line. (2) Managers need to analyze their product lines periodically to assess each product item’s sales and profits and to understand how each item contributes to the line’s overall performance. (3) Is influenced by company objectives and resources. 3. Expand product line (1) Product line filling 1) Adding more items within the present range of the line. 2) Reasons: ✓ Reaching for extra profits ✓ Satisfying dealers ✓ Using excess capacity ✓ Being the leading full-line company ✓ Plugging holes to keep out competitors 3) The company should ensure that new items are noticeably different from existing ones. (2) Product line stretching—Lengthen product line beyond current range 1) Downward ✓ To plug a market hole that otherwise would attract a new competitor ✓ To respond to a competitor’s attack on the upper end ✓ Find faster growth taking place in the low-end segments 2) Upward
To add prestige to their current products May be attracted by a faster growth rate or higher margins at the higher end 3)Both ways (Product Mix Decisions 1.Product Mix-all the product lines&items offered ()Width-一number of different product lines(产品线的数量) (2)Length-一total number of items in product lines(产品线中所包含的产品种类 或产品项目的数量) (3)Depth-一number of versions of each product(每条产品线内所包含的产品品 种、样式和数量) (4)Consistency-how closely related the various product lines are in the end use,production requirements,distribution channels or some other way. 同产品线之间在最终用途、生产要求、分销渠道及其他方面相互关联的紧密程 度) 2.Provide the handles for defining the company's product strategy.The company can increase its business in four ways (1)Add new product lines,widening its product mix-in this way,its new lines build on the company's reputation in its other lines (2)Can lengthen its existing product lines to become a more full-line company (3)Add more versions ofeach product and thus deepen its product mix (4)Pursue more product line consistency-or less-depending on whether it wants to have a strong reputation in a single field or in several fields. 三、 Branding Strategy:Building Strong Brands brand represents everything that a product or service means to consumers. As such,brands are valuable assets to a company
7 ✓ To add prestige to their current products ✓ May be attracted by a faster growth rate or higher margins at the higher end 3) Both ways (三) Product Mix Decisions 1. Product Mix –all the product lines & items offered (1) Width—number of different product lines(产品线的数量) (2) Length—total number of items in product lines（产品线中所包含的产品种类 或产品项目的数量） (3) Depth—number of versions of each product（每条产品线内所包含的产品品 种、样式和数量） (4) Consistency—how closely related the various product lines are in the end use, production requirements, distribution channels or some other way. (不 同产品线之间在最终用途、生产要求、分销渠道及其他方面相互关联的紧密程 度) 2. Provide the handles for defining the company’s product strategy. The company can increase its business in four ways: (1) Add new product lines, widening its product mix—in this way, its new lines build on the company’s reputation in its other lines (2) Can lengthen its existing product lines to become a more full-line company. (3) Add more versions of each product and thus deepen its product mix (4) Pursue more product line consistency—or less—depending on whether it wants to have a strong reputation in a single field or in several fields. 三、 Branding Strategy: Building Strong Brands A brand represents everything that a product or service means to consumers. As such, brands are valuable assets to a company