Product Mix Decisions and New Product Planning

Identify  the major product mix decisions that marketers must make.

      A product mix is the assortment of product lines and individual offerings available from a marketer. Its two primary components are product line (a series of related products) and individual offerings (single products). Product mixes are assessed in terms of length, width, and depth of assortment.

Length refers to the number of products in the mix. Width means the number of product lines the firm offers. Depth refers to variations of each product in the mix.

Explain why most firms develop a line of related products rather than a single product.

      Firms usually produce several related products rather than single products to achieve the objectives of growth, optimal use of company resources, and increased company importance in the market, and to exploit the product life cycle.

Identify alternative new&-product development strategies and the determinants of each strategies's success.

      Many new&-product ideas are required in order to produce one commercially successful product. The success of a new product depends on a host of factors and can result from four alternative product development strategies. A market penetration strategy refers to the modification of existing products in existing markets. The finding of new markets for established products is called a market development strategy. The introduction of new products into established or identifiable markets is referred to as a product development strategy. The creation of new products for new markets is called a product diversification strategy.

Explain the various organizational structures for new&-product development.

      New&-product organizational responsibility in most large firms is assigned to new&-product committees, new&-product departments, product managers, or venture teams. New&-product committees are review committees for new&-product ideas. New&-product departments are organizational units charged with the actual development of new products. Individual given the responsibility for determining marketing strategies for a product, brand, or product line are called product managers. Venture teams are temporary groups set up to develop a specific product or product line.

List the stages in the new&-product development process.  

      New&-product ideas evolve through six stages on the way to their market introduction; idea generation, screening, business analysis, product development, testing, and commercialization.

Explain the roles of brands, brand names, and trademarks in a marketing strategy.

      A brand is a name, term, sign, symbol, design, or some

combination used to identify the products of one firm and differentiate them from competitive offerings. A brand name is the name part of a brand. A trademark is a brand that has been given legal protection that is granted exclusively to its owner. A trademark includes both the brand's pictorial design and the brand name.

Describe the major functions of the package.

      Modern packaging is designed to protect against damage, spoilage, and pilferage; to assist in marketing the product; and to be cost effective.

Outline the functions of the Consumer Product Safety Commission and the concept of product liability.

            Product safety has become an increasingly important component of the total product concept. It has evolved through voluntary attempts by product designers to reduce hazards, through various pieces of legislation, and through the establishment of the consumer Product Safety Commission. The CPSC was established by the Consumer Product Safety Act of 1972. It has jurisdiction over every consumer product except food, automobiles, and a few other products already regulated by other agencies. It can ban products without a court hearing, order the recall or redesigned of products, inspect production facilities, and charge violators of its rules with criminal offenses. the concept of product liability refers to the producer's or marketer's legal responsibility for injuries or damages caused by a defective product. It is becoming an increasingly important factor in contemporary marketing.