Page 299 - Foundations of Marketing

266 Part 4 | Product and Price Decisions

A product item is a specific version of a product that
can be designated as a distinct offering among an organiza-
tion’s products. An Abercrombie & Fitch polo shirt represents
a product item. A product line is a group of closely related
product items that are considered to be a unit because of mar-
keting, technical, or end-use considerations. For example,
Purina’s Fancy Feast includes five different varieties of wet,
dry, or kitten gourmet cat food in the same product line. 7
Twinings of London’s herbal teas have a complete product line
with a variety of different flavors. In its advertising, the com-
pany surrounds its tea varieties with different fruits and herbs
to demonstrate the assortment of ingredients in its herbal teas.
The exact boundaries of a product line (although some-
times blurred) are usually indicated by the use of descrip-
tive terms such as “frozen dessert product line” or “shampoo
product line.” Specifi c product items in a product line, such
as different dessert fl avors or shampoos for oily and dry hair,
usually refl ect the desires of different target markets or the
different needs of consumers. Thus, to develop the optimal
product line, marketers must understand buyers’ goals.
Firms with high market share are likely to expand their prod-
uct lines aggressively, as are marketers with relatively high
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prices or limited product lines. This pattern can be seen in
Courtesy of Twinings to expand their product lines when industry barriers are low
the personal computer industry, where companies are likely
or perceived market opportunities exist.
A product mix is the composite, or total, group of prod-
ucts that an organization makes available to customers.
Product Line Procter & Gamble’s product mix comprises all the health-
Twinings of London has a product line consisting of 14 varieties of care, beauty-care, laundry and cleaning, food and beverage,
herbal teas, as well as a number of black and green tea products.
paper, cosmetic, and fragrance products the firm manufac-
tures. The width of product mix is measured by the number
product item A specific
version of a product that can be of product lines a company offers. General Electric offers multiple product lines, including
designated as a distinct offering consumer products such as housewares, health-care products such as molecular imaging, and
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among a firm’s products commercial engines for the military. The depth of product mix is the average number of
product line A group of closely different product items offered in each product line. Figure 10.2 shows the width and depth
related product items viewed as a of part of Procter & Gamble’s product mix. Procter & Gamble is known for using distinc-
unit because of marketing, tech- tive branding, packaging, segmentation, and consumer advertising to promote individual
nical, or end-use considerations items in its detergent product line. Tide, Bold, Gain, Cheer, and Era—all Procter & Gamble
product mix The total group of detergents—share the same distribution channels and similar manufacturing facilities, but
products that an organization each is promoted as a distinctive product, adding depth to the product line.
makes available to customers

LO 4 . Understand the product PRODUCT LIFE CYCLES AND
life cycle and its impact on
marketing strategies. MARKETING STRATEGIES

Just as biological cycles progress from birth through growth and decline, so do product
life cycles. As Figure 10.3 shows, a product life cycle has four major stages: introduction,
width of product mix The
number of product lines a growth, maturity, and decline. As a product moves through its cycle, the strategies relating
company offers to competition, pricing, distribution, promotion, and market information must be evaluated
depth of product mix The periodically and possibly changed. Astute marketing managers use the life-cycle concept to
average number of different make sure that the introduction, alteration, and deletion of products are timed and executed
product items offered in each properly. By understanding the typical life-cycle pattern, marketers can maintain profitable
product line product mixes.

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