The set of all product lines and items that a particular seller offers for sale

Product Mix

A product mix (also called product assortment) is the set of all product

lines and items that a particular seller offers for sale to buyers.

An organization with several product lines has a product mix. Product mix

need not consist of related products. In other words, product mix is―the

composite of products offered for sale by a firm. It is a collection of

products manufactured or distributed by a firm. It is the full list of all

products offered by a firm.

For instance, a firmmanufactures watches, machinery items, electric

lamp etc.

It has four main characteristic:

1) Length.

2) Width.

3) Depth.

4) Consistency.

Length of product mix refers to the total number of items in its product mix.

Width or breadth of the product mix refers to the number of different

product lines offered by the company. Depth of the product mix refers to

the average number of items offered by the company in each product line.

Consistency of the product mix refers to how closely the various product

lines are related in production requirements, distribution, channels etc. For

instance, products manufactured by an electric company have an overall

consistency, as most products involve electricity power.

Factors Influencing ProductMix

Generally it is very difficult for a concern to take a decision about the

number of products it should produce at a given time because the number

of products or product mix is affected by several factors. Changes in the

product mix, that is, adding or eliminating products, may be due to the

following factors.

1. Change in demand of a product due to populationchanges,

2. Changes in purchasing power or behaviour of thecustomers,

3. Change in companydesire,

Presentation on theme: "Product Mix The set of all of the product lines and items that a particular seller offers for sale."— Presentation transcript:

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2 Product Mix The set of all of the product lines and items that a particular seller offers for sale.

3 Procter & Gamble's Product Mix
Product Mix Decisions Procter & Gamble's Product Mix Baby Care Beauty Care Fabric & Home Food & Health Care Care Beverage Width – number of different product lines Length – total number of items the company carries within product lines Depth – number of versions offered of each product in line Six Toothpastes in Line Crest Multicare Crest Cavity Protection Crest Tartar Protection

4 Product Mix Decisions Width 寬度 Length 長度 Depth 深度 Consistency 一致性
Number of different product lines the company carries Width 寬度 Total number of items a company carries within its product lines Length 長度 Number of versions offered for each product in the line Depth 深度 Relativity of the various product lines in end use, production requirements, distribution channels, or some other aspect Consistency 一致性 A company’s product mix has four important dimensions: width, length, depth, and consistency. The mix width refers to the number of different product lines the company carries. Product mix length refers to the total number of items a company carries within its product lines. Product mix depth refers to the number of versions offered for each product in the line. Finally, the consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other aspect. A company can increase its business in four ways. It can add new product lines, widening its product mix. The company can lengthen its existing product lines to become a more full-line company. It can add more versions of each product and thus deepen its product mix. Finally, the company can 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. Finally, a company can 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.

5 Discussion Questions 請問下列產品組合特質有何策略意義？ 1. 寛度大 vs. 寛度小 大多角化；小專業性
一致性高綜效； 一致性低創新、多角化 3. 某一產品線長度特別長專業化，全線產品 4. 某一產品項目深度特別深金雞母

6 Product Line Decisions
A product line is closely related products that: Have similar functions and customer groups Are sold through similar outlets or fall within given price ranges Product line length is the number of items in the product line. Product line filling 產品線填滿 Product line stretching 產品線延伸 A product line is 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. For example, Nike produces several lines of athletic shoes and apparel. The major product line decision involves product line length, which is the number of items in the product line. A company can expand its product line in two ways: line filling and line stretching. Line filling involves adding more items within the present range of the line. There are several reasons for product line filling. These reasons include reaching for extra profits, satisfying dealers, using excess capacity, being the leading full-line company, and plugging holes to keep out competitors. Line stretching occurs when a company lengthens its product line beyond its current range. The company can stretch its line downward, upward, or both ways. A reason for downward product line stretching is to plug a market hole that would attract a potential competitor. The reason for upward product line stretching is to add prestige to the current product.

7 Product Line Decisions
Product Line Length Number of Items in the Product Line Filling Lengthen within current range Stretching Lengthen beyond current range. Can be: Downward Upward Both Directions 產品線填滿 增加深度 產品線延伸 增加長度

8 產品組合/產品線 Product line stretching 現有的 產品線 高價、 高品質 向上延伸 的產品
(upward stretch) 高價、 高品質 的產品 現有的 產品線 向下延伸 (downward stretch) 低價、低品質 的產品

9 Branding strategy 品牌的意義 品牌兩大元素：________、________ 品牌標誌 品牌名稱
張君雅小妹妹 品牌若登記註冊就成了商標 (trademark) 可書寫、發音，用聽覺辨識 用視覺辨識

10 Branding strategy The brand is more valuable than the totality of all these assets.

11 Branding Strategy A name, term, sign, symbol, or design or a combination of these that identifies the maker or seller of a product or service. Customers view a brand as an important part of a product, and branding can add value to a consumer’s purchase. Attach meanings (brand association) to brands and develop brand relationships. Note to Instructor: Consumers view a brand as an important part of a product, and branding can add value to a consumer’s purchase. Customers attach meanings to brands and develop brand relationships. As a result, brands have meaning well beyond a product’s physical attributes. Branding helps buyers in many ways. Brand names help consumers identify products that might benefit them. Brands also say something about product quality and consistency— buyers who always buy the same brand know that they will get the same features, benefits, and quality each time they buy. Branding also gives the seller several advantages. The seller’s brand name and trademark provide legal protection for unique product features that otherwise might be copied by competitors. Branding helps the seller to segment markets. For example, rather than offering just one general product to all consumers, Toyota can offer the different Lexus, Toyota, and Scion brands, each with numerous sub-brands—such as Camry, Corolla, Prius, Matrix, Yaris, Tundra, and Land Cruiser.

12 Branding Strategy Advantages for buyers: Advantages for sellers:
Identify products 識別 Say something about quality and consistency 品質 Advantages for sellers: Provide legal protection 法律保護 Segment markets 區隔市場 Build story 建立故事 Building and managing brands are perhaps the marketer’s most important tasks. Note to Instructor: Consumers view a brand as an important part of a product, and branding can add value to a consumer’s purchase. Customers attach meanings to brands and develop brand relationships. As a result, brands have meaning well beyond a product’s physical attributes. Branding helps buyers in many ways. Brand names help consumers identify products that might benefit them. Brands also say something about product quality and consistency— buyers who always buy the same brand know that they will get the same features, benefits, and quality each time they buy. Branding also gives the seller several advantages. The seller’s brand name and trademark provide legal protection for unique product features that otherwise might be copied by competitors. Branding helps the seller to segment markets. For example, rather than offering just one general product to all consumers, Toyota can offer the different Lexus, Toyota, and Scion brands, each with numerous sub-brands—such as Camry, Corolla, Prius, Matrix, Yaris, Tundra, and Land Cruiser.

13 Branding Equity and Brand Value
Young & Rubicam’s Brand Asset Valuator: Differentiation 品牌獨特之處是什麼 Relevance 他能滿足我的需求嗎? Knowledge 我對他的了解是什麼? Exteem 我尊重這個品牌嗎? 想想下列品牌對你的意義

14 Branding Equity and Brand Value
Brand equity： The differential effect that knowing the brand name has on customer response to the product or its marketing Brand value is the total financial value of a brand. The fundamental asset underlying brand equity is customer equity—the value of customer relationships that the brand creates. Ad agency Young & Rubicam’s Brand Asset Valuator measures brand strength along four consumer perception dimensions: differentiation, relevance, knowledge, and esteem. Brands with strong brand equity rate high on all four dimensions. A brand with high brand equity is a very valuable asset. Brand value is the total financial value of a brand. High brand equity provides a company with many competitive advantages. A powerful brand enjoys a high level of consumer brand awareness and loyalty. A powerful brand forms the basis for building strong and profitable customer relationships. The fundamental asset underlying brand equity is customer equity. This refers to the value of customer relationships that the brand creates. The proper focus of marketing is building customer equity, with brand management serving as a major marketing tool. According to one estimate, the brand value of Google is a whopping $159 billion and Apple is at $148 billion.

15 Branding Equity 品牌 權益 品牌知名度 消費者是否能回憶與認識該品牌？ 知覺品質 消費者對該品牌的品質有何認知？
消費者是否從該品牌產生正面感覺、 認知與態度等？ 品牌聯想 品牌忠誠度 消費者是否會重複購買？ 其他專屬品 牌資產 是否有商標、專利、通路關係等有利 品牌的內外部資產？

16 Branding Equity High level of consumer brand awareness and loyalty 高知名度與忠誠度 The company has more leverage in bargaining with resellers 在通路中擁有議價或談判的優勢 The company can launch line and brand extensions容易進行產品線與品牌延伸策略 Offers the company defense against fierce price competition抵抗激烈的價格競爭

17 Major Brand Strategy Decisions
Brand positioning Attributes Benefits Beliefs and values Brand name selection Selection Protection Brand sponsorship Manufacturer’s brand Private brand Licensing Co-branding Brand development Line extensions Brand extensions Multibrands New brands Brands are powerful assets that must be carefully developed and managed. As this figure suggests, building strong brands involves many challenging decisions. This figure shows that the major brand strategy decisions involve brand positioning, brand name selection, brand sponsorship, and brand development.

18 Brand Positioning Marketers can position brands clearly in customers’ minds at any of three levels Product attributes Product benefits Beliefs and values P&G Pampers positioning strategy? Note to Instructor: Compare the different positioning adopted by well-known products in the same categories, e.g., Apple and Microsoft, Coke and Pepsi. Discuss how this positioning influences all brand decisions. Successful brands engage customers on an emotional level, as does this ad, which suggests the connection that hardcore users have with the WD-40 brand

19 Brand Positioning Pampers Product attributes Product benefits
Fluid absorption, fit, disposability Product benefits Skin-health benefits from dryness Beliefs and values Where we grow together, happy babies, baby development Lovemarks Note to Instructor: Compare the different positioning adopted by well-known products in the same categories, e.g., Apple and Microsoft, Coke and Pepsi. Discuss how this positioning influences all brand decisions. Successful brands engage customers on an emotional level, as does this ad, which suggests the connection that Pampers users concern their babies .

20 The Body Shop Attributes Benefits Beliefs and Values
Talk about Products’ natural，environmentally friendly ingredients, unique scents, and special textures. Benefits Talk about the resulting beauty benefits, such as clearer skin from its Tea Tree Oil Facial Wash and sun-kissed cheeks from its Bronzing Powder. Beliefs and Values Talk about how purchasing these products empowers its socially conscious customer to “make up your mind, not just your face.”

21 Establish a mission and a vision for the brand .
Discussion Questions 黑松茶花綠茶 Attributes 每瓶含有茶花抽出物100mg Benefits 促進新陳代謝、調節生理機能、清爽健康好喝 Beliefs and Values 花太郎變麻豆?????? 缺少信念與價值，品牌優勢無法持久 The strongest brands go beyond attribute or benefit positioning. They are positioned on strong beliefs and values. Establish a mission and a vision for the brand .

22 Brand Name Selection A brand name should:
Based on the product’s benefits and qualities Easy to pronounce, recognize, and remember Distinctive Extendable Easily translated into foreign languages Capable of registration and legal protection It begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies. Note to Instructor: After a decade of choosing quirky names (Yahoo!, Google) or trademark-proof made-up names (Novartis, Aventis, Accenture), today’s style is to build brands around names that have real meaning. For example, names like Silk (soy milk), Method (home products), Smartwater (beverages), and Blackboard (school software) are simple and make intuitive sense. Many firms try to build a brand name that will eventually become identified with the product category. Brand names such as Kleenex, Levi’s, JELL-O, BAND-AID, Scotch Tape, Formica, and Ziploc have succeeded in this way. However, their very success may threaten the company’s rights to the name. Many originally protected brand names—such as cellophane, aspirin, nylon, kerosene, linoleum, yo-yo, trampoline, escalator, thermos, and shredded wheat—are now generic names that any seller can use.

23 Brand Name Selection Based on the product’s benefits and qualities
免你洗、好力旺、克蟑、挺立、舒跑 It should be easy to pronounce, recognize, and remember. 嘶嘶、澎澎、乖乖、Pinky、Nike The brand name should be distinctive. 十八銅人行氣散、鐵牛運功散 It should be extendable. 愛之味、普那疼、桂格 紅豆襯衫 vs. 金獅領帶誰輸誰贏?

24 Brand Name Selection The name should translate easily into foreign languages. Coke、Pepsi、General Electric、Hyundai Carrefour、Revlon It should be capable of registration and legal protection. McDonalds Once chosen, the brand name must be protected. To Protect their brands, marketers present them carefully using the word ”brand” and the registered trademark symbol.

25 Brand Sponsorship National brands Store brands Licensing Co-branding
Products are marketed under the manufacturer’s own name 全國品牌、製造商品牌 National brands Brands created and owned by a reseller of a product or service 商店品牌、通路品牌 Store brands Use names and symbols created by other companies or well-known movie characters or celebrities for a fee 授權品牌 Licensing Use the established brand names of two different companies on the same product 聯合品牌 Co-branding

26 Brand Sponsorship Sellers of children’s products attach an almost endless list of character names to clothing, toys, school supplies, linens, dolls, lunch boxes, cereals, and other items Disney is the world’s biggest licensor with a studio full of hugely popular characters. Disney characters reaped a reported $37.5 billion in worldwide merchandise sales in 2013.

27 Brand Sponsorship 品牌歸屬權 中間商品牌 製造商品牌 (distributor brand)
(store brand) (private brand) 製造商品牌 (manufacturer brand) (national brand) 中間商品牌在歐美相當普遍。 台灣的中間商品牌並不多見，但近幾年卻快速成長。

28 Brand Sponsorship 零售商發展本身品牌的主因 因應激烈競爭，賺取較多毛利 節省生產投資與上架費等，能壓低售價吸引消費者
憑全國連鎖、接近消費者、掌握店內廣告與商品陳列位置等優勢，中間商品牌容易打開知名度 透過委託生產，進而掌握商品的成本結構與市場行情

29 Marketing At Work Consumer frugality (節檢) results in increased sales of store brands. Store brands now offer much greater selection, and are rapidly achieving name-brand quality. Walmart’s store brands account for a whopping 25 percent of its sales, and its Great Value brand is the nation’s largest single food brand

30 Figure 7.6 - Brand Development Strategies
This figure illustrates the four choices that a company has when it comes to developing brands. It can introduce line extensions, brand extensions, multibrands, or new brands. Line extensions occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category. A company might introduce line extensions as a low-cost, low-risk way to introduce new products. Or it might want to meet consumer desires for variety, use excess capacity, or command more shelf space from resellers. A brand extension extends an existing brand name to new or modified products in a new category. It gives a new product instant recognition and faster acceptance. But an extension may also confuse the image of the main brand. Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share. A major drawback of multibranding is that each brand might obtain only a small market share, and none may be very profitable. A company might believe that the power of its existing brand name is waning, so a new brand name is needed. Or, it may create a new brand name when it enters a new product category for which none of its current brand names are appropriate. For example, Toyota created the separate Lexus brand aimed at luxury car consumers and the Scion brand, targeted toward Millennial consumers.

31 Brand Development Strategies
現存 新的 產品類別 品牌名稱 Line Extension 產品線延長 Multibrands 多品牌 Brand Extension 品牌延伸 New Brands 全新品牌

32 Brand Development Strategies
Line Extension Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors within a product category Brand Extension Extending an existing brand name to new product categories Multibrands Marketing many different brands in a given product category New Brands Created for new product category, or when interest in existing brands decreases

33 Line extensions 產品線延長 A low-cost, low-risk way to introduce new products. To meet consumers desires for variety, use excess capacity, or simply command more shelf space from resellers. An overextended brand name might lose some of its specific meaning, can cause consumer confusion or frustration, or can cannibalize the company's other items. (20 different varieties in COCA)

34 Brand extension 品牌延伸 Gives a new product instant recognition and faster acceptance. Saves the high advertising costs. May confuse the image of the main brand, may not be appropriate to a particular new product. If it fails, it may harm consumer attitudes toward other products carrying the same brand name.

35 Multi brands 多品牌 new brand names introduced in the same product category. 在相同類別推出不同品牌 Ex:寶鹼、台塑王品 Seiko Lasalle & Pulsar

36 Multi brands 多品牌 Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share. A major drawback of multibranding is that each brand might obtain only a small market share, and none may be very profitable.

37 New Brands 全新品牌 Sometimes there are already too many brands, with too few differences between them. The company may pursue megabrand strategies—weeding out weaker or slower-growing brands and focusing their marketing dollars on brands that can achieve the number-one or number-two market share position.

38 Managing Brands Communicate the brand’s positioning 溝通品牌定位
Manage all brand touch points 管理品牌接觸 Train employees to be customer centered 訓練員工以顧客為中心 Audit the brands’ strengths and weaknesses 稽核品牌優弱勢 Managing brands requires managing “touch points.” Says a former Disney executive; “A brand is a living entity, and it is enriched or undermined cumulatively over time, the product of a thousand small gestures.”

What is a set of all product lines and items that a particular seller offers for sale?

What is refers to set of products which are offered for sale by a firm?

What refers to set of products which are offered for sale by a phone?

Which of the following terms refers to the different product lines offered by a company?