9-1 Chapter 9 Product-Mix Strategies 9-2 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Goals • 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 9-3 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Product Mix and Product Line PRODUCT MIX 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 9-4 Product Mix PRODUCT MIX BREADTH The number of product lines carried 9-5 DEPTH Variety of sizes, colors, models within a product line Product Mix- Breadth and Depth 9-6 Positioning the Product 9-7 COMPETITOR Differential advantage PRODUCT CLASS OR ATTRIBUTE Associated with attractive attribute PRICE AND QUALITY High price/high quality or low price Product-Mix Strategies Expansion Alteration of existing products 9-8 Contraction Trading Up and Trading Down Product Life Cycle 9-9 Product Life-Cycle Stages 9-10 Length of Product Life-Cycle Product life-cycle variations 9-11 Life-Cycle Management Entry Strategies Introduction 9-12 Managing on the Rise Managing during Maturity Growth Maturity Surviving the Decline Decline Planned Obsolescence Technological Obsolescence Style Obsolescence 9-13 Fashion Adoption Process 9-14 Key Terms and Concepts • • • • • • • • • • Product mix Breadth Depth Product line Product-mix expansion Line extension Mix extension Product alteration Product-mix contraction Trading-up 9-15 McGraw-Hill/Irwin • • • • • • • • • • Trading down Product life cycle Introduction stage Growth stage Maturity stage Decline stage Fad First-mover advantage Product abandonment Planned obsolescence Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms and Concepts • • • • • • • • • Technological obsolescence Style obsolescence Style Fashion Fashion-adoption process Fashion cycle Trickle-down theory Trickle-across theory Trickle-up theory 9-16 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.