Question: What Is A Product Line Strategy?

What is product line pricing strategy?

Product line pricing involves the separation of goods and services into cost categories in order to create various perceived quality levels in the minds of consumers.

You might also hear product line pricing referred to as price lining, but they refer to the same practice..

What is the difference between a product mix and a product line?

All the products a given company produces comprise the product mix, or product assortment. A product line would be a group of these products associated by function, by consumer group, by distribution channel or by price range.

What are the 3 product mix strategies?

The major alternative product mix strategies (given by William Stanton and others) have been discussed briefly as under:Expansion of Product Mix: … Contraction of Product Mix: … Deepening Product Mix Depth: … Alteration or Changes in Existing Products: … Developing New Uses of Existing Products: … Trading Up: … Trading Down:More items…

What is product mix and examples?

Product mix, also known as product assortment, refers to the total number of product lines a company offers to its customers. For example, your company may sell multiple lines of products. … Or your product lines may be vastly different, such as diapers and razors.

What is a product line depth?

product line depth: Product line depth refers to the number of products in a company’s specific product line.

What is product line depth and width?

Width : Number of different product lines carries by the company. Length : Total Number of items in the product line. Depth : Number of version offered of each product in the line. Consistency : Closely related the various product lines.

What are product line strategies?

A product line strategy is a coherent approach to advance related products. It guides managers to improve the performance of their products and services, and to avoid disjointed actions and investments. A good strategy will respond to change, whether major disruptions or incremental.

What is product line length with example?

The length of the product mix means total number of products within the company product lines. For example, if a company has 10 product lines and each line has 3 products, then length is (10×3) = 30. … If a company has 5 product lines and 10 products under each product lines, the length of the mix will be 50 [5 x 10].

What are the 5 pricing strategies?

Types of Pricing StrategiesCompetition-Based Pricing.Cost-Plus Pricing.Dynamic Pricing.Freemium Pricing.High-Low Pricing.Hourly Pricing.Skimming Pricing.Penetration Pricing.More items…•

What is product mix and its elements?

The product mix is the variety of products a company produces or sells to the marketplace. … Retailers carry a mixture of products to satisfy various customers. The product mix includes four common elements: Length, breadth, depth and consistency.

What is Product Strategy example?

Examples of product initiatives include: Improve customer satisfaction. Increase lifetime customer value. Upsell new services.

Which of the 4 P’s is most important?

Marketing has 4Ps too: Product, Place, Promotion and Price. The most important P (arguably) is Price. … Not just in service marketing but in all business to business marketing. In consumer marketing the customer relationship tends to be with a brand.

What are the 3 levels of a product?

Three levels of product are involved in any purchase. The levels of product include the core customer value, the actual product and the augmented product.

What is a product line length?

the number of different products in a product line. See: Product Line.

What do you mean by product pricing?

Definition: To establish a selling price for a product. No matter what type of product you sell, the price you charge your customers or clients will have a direct effect on the success of your business.

What are the four product mix strategies?

These are called the 4P’s and are product, price, promotion, and place. These four components help determine a clear and effective strategy to bring a product to market. Each element is crucial in its own right and needs to be given due focus.

What is mean by product mix?

Product mix, also known as product assortment or product portfolio, refers to the complete set of products and/or services offered by a firm. A product mix consists of product lines, which are associated items that consumers.

Why is product mix important?

Your product mix is important in determining the image of your business and brand, as it helps you to maintain consistency in the eyes of your target market. For instance, if you’re a discount retailer, your target market likely consists of economy-minded shoppers looking for low prices.