MKTG

Principles Of Marketing
Twelfth Edition

Chapter 10
Product Concepts
LO 3

© 2019 Cengage. All rights reserved.

 Learning Outcomes

10-1 Define the term product

10-2 Classify consumer products
10-3 Discuss how product items, product lines, and
product mixes are managed in marketing
strategy
10-4 Describe marketing uses of branding
10-5 Describe marketing uses of packaging and labelling
10-6 Discuss global issues in branding and packing
10-7 Describe how and why product warranties are
important marketing tools

© 2019 Cengage. All rights reserved.

Learning Objective 3: Product Items,
Lines, and Mixes

© 2019 Cengage. All rights reserved.

 Product Items, Lines, and Mixes
• Product items: Specific versions of a product that can be designated as a distinct
offering among an organization’s products

• Product lines: Groups of closely related product items

• Product mixes: All products that an organization sells

• Product mix width (or breadth): Refers to the number of product lines an organization
offers
– Toothpaste + Mouthwash + Whitestrips = 3
• Product line depth: The number of product items in a product line
– Toothpaste6 = 54
– Mouthwash7 = 22
– Whitestrips6 = 7

© 2019 Cengage. All rights reserved.

 Benefits of Product Lines
• Equivalent quality: Line items perceived as having similar quality

• Advertising economies: Spread cost of promotion for multiple items

JJ’s BOGO is back.

• Standardized components: Product lines allow firms to standardize components, thus

reducing manufacturing and inventory costs.

• Efficient sales and distribution: Enables a targeted range of choices to customers,

which results in better distribution and retail coverage

© 2019 Cengage. All rights reserved.

 Adjustments
• Product items
– Product modification
− Product repositioning

• Product mixes
– Add product line
– Remove product line

• Product lines
− Product line extension: adding product items to an existing product line
− Product line contraction: removing product items from an existing product line

© 2019 Cengage. All rights reserved.

 Product Item Adjustments
• Product modifications
– Functional: change the way product is used
 Sony removes “Communities” feature from PS5 – unnecessary notifications and not used much
 Instagram adding new group live-stream feature to combat up-and-coming competitor clubhouse.

– Quality: change durability, dependability or overall quality of the experience

 Apple improving camera & battery life for iPhone 12
 April 2020: Zoom 5.0 defaults to password requirement in settings
 2019: Johnson & Johnson eliminates unnecessary ingredients and artificial color in No More Tears, but
promises the scent and experience are the same

New “consistent” Gmail logo frustrating

Google Workplace users
– Style: change superficial feature

J.R. Smucker educates

consumers on how to
pronounce “gif”

© 2019 Cengage. All rights reserved.

 Product Item Adjustments

• Repositioning: Changing consumer perceptions of a brand or product

– Can involve any modification or promotional efforts

The General Refresh

es Promos to increas
e quality perceptions

• Planned obsolescence: Practice of modifying products so those that have already been
sold become obsolete before they actually need replacement
– Portuguese consumer protection group Deco Proteste suing Apple over alleged planned
limited battery life on iPhone 6, 6S, and 6S Plus

© 2019 Cengage. All rights reserved.

 Product Mix & Line Adjustments

• Product mix adjustments

– Adding new product lines: diversifies risk by expanding into new market opportunity
 Rothy’s introduces line of handbags made from recycled ocean plastic
– Removing product lines: sheds unprofitable lines and/or makes room for other products
 Ford to phase out gasoline-powered vehicles in Europe by 2026
• Product line adjustments
− Product line extension: generate revenues from a new target segment
− CBD Living adds new sweet potato flavor to its pup treats

− Product line contraction: shed unprofitable items from the line

− Why Netflix cancels so many shows “with potential” after a couple of seasons

© 2019 Cengage. All rights reserved.