3.03

trading down

When a company decides to add a lower priced product or line to its mix, it is using a trading-down strategy.

trading up

When a company decides to add a higher priced product or line to its mix, it is using a trading-up strategy.

expansion

A business may expand its product mix by adding additional product items or lines.

product line

A product line is a group of related product items.

positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

consistency

Consistency refers to how closely a company's product lines are related in terms of: • End use • Methods of distribution and production • Target market(s) • Price range

contraction

Contraction means removing product items or lines from the product mix

product item

Each individual good, service, or idea that a business offers for sale is a product item.

length

Length refers to the total number of products in the product mix.

product mix (4 P's)

Price,product,place and promation

broad width

The business with a broad product mix offers many product lines.

deep depth

The business with a deep product mix offers significant variation of its products

narrow width

The business with a narrow product mix offers a limited number of product lines.

shallow depth

The business with a shallow product mix offers few variations within the product line.

product mix

The particular assortment of products a business offers to meet its market's needs and its company's goals is its product mix.

alteration

This product-mix strategy involves making changes in the company's products or lines.

depth

This term refers to the assortment of sizes, colors, favors, and models offered in a company's product lines. In other words, depth refers to the variation of items.

width

This term, also called breadth, refers to the number of product lines a company carries. It is usually referred to as being narrow or broad.

product planning

involves making decisions about all those factors in order to sell the product.

breadth

refers to the number of product lines a company carries. It is usually referred to as being narrow or broad.