- Companies at the lower end of the market may want to stretch their product lines upwards. They may be attracted
by a faster growth rate or higher margins at the higher end, or they may simply want to position themselves as full-
line manufacturers or add prestige to their current products.
Stretching both ways
Filling the Product Line
- An alternative to product line stretching is product line filling-adding more items within the present range of the
line. Reasons for product line filling: reaching for extra profit, trying to satisfy dealers, trying to use excess capacity,
trying to be the leading full-line company, and trying to lug holes to keep out competitors.
Product Mix Decisions
- Product Mix (or product assortments): The sell of all products lines and items that a particular seller offers for sale
- The width of the products mix refers to the number of different product line the company carries.
- The length of the product mix refers to the number of different product line the company carries.
- Figure 8-2 Product Mix (286)
- The depth of the product mix refers to the number of versions offered of each product in the line. Thus, Crest
comes in three sizes and 2 formulations (paste, and gel); Crest has a depth of 6.
- The government offers service through courts, employment services, hospital, loan agencies, military and police…
- The private non-profit organizations offer service through museums, charities, churches, colleges, and
- Business organizations offer service through airlines, banks, hotels, insurance companies, and entertainment…
Nature and Characteristics of a Service
- A service is any activity or benefit that one party can offer to another that is essentially intangible and does not
result in the ownership of anything.
- A company must consider four special characteristics of a service when designing marking programs, intangibility,
inseparability, variability, and perishability.
- Figure 8-6 Four service characteristics (290)
Intangibility - Service Intangibility: A major characteristic of service-they cannot be seen, tastes, felt, heard, or smelled before
they are bought. Example; cosmetic surgery.
- Service inseparability: A major characteristic of services- they are produced and consumed at the same time and
cannot be separated from their providers, whether the providers are people or machines.
- Service Variability: A major characteristics of services-their quality may vary greatly, depending on who