Question
Distinguish between product item, product line, and product mix. Describe various product line strategies. (10)
Explain briefly the 'product life cycle concept' in marketing management and state why do you feel it is useful to understand this concept.
Answer :
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A product item is a specific product that a company offers for sale. It is a distinct unit identified by its size, model, colour, quality, price, or other characteristics. For example, a company like Hindustan Unilever may offer a particular variant of Dove shampoo. A product line is a group of closely related products that satisfy similar needs, are sold to the same customer groups, or use similar distribution channels. For example, Dove may have a product line consisting of shampoos, conditioners, soaps, and body washes. A product mix is the complete range of all product lines offered by a company. Thus, a company may have several product lines such as personal care, home care, and foods, together forming its product mix. Product line strategies are important decisions concerning the length, width, and positioning of a product line. One major strategy is product line extension, in which a company adds new products or variants within an existing product category. It may introduce different sizes, flavours, colours, qualities, or price levels to attract different customer segments. For example, a beverage company may introduce several flavours and package sizes of the same drink. Product line expansion involves adding products beyond the existing range to serve new market segments. A company may expand its line upward by introducing premium products with higher quality
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