Product/Service
Management
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Product Mix
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Product Line
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Product Width
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Product Depth
Product MIX:
All the different products
that a company makes or
sells.
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KRAFT Company Example:
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….Kraft
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….Maxwell House
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….Kool-Aid
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….Oscar Mayer
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….Post Cereal products
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Product Line
◦ Group of closely related
products manufactured
&/or sold by a business
◦ Example:
Kellogg’s makes all the
cereals listed
All product lines are apart
of the product mix

A product line can be determined by the
following:
◦ They function similarly
 All of Chevrolets Cars are a Product Line
◦ They are sold to the same groups of people
 All of Staples Supplies sold to schools
◦ Are marketed the same way
◦ Are priced similarly

Product Item
◦ A specific model,
brand, or size of a
product within a
product line.

Product Mix Example
◦ All classes AK offers

Product Line
◦ All marketing courses offered

Product Item
◦ Marketing
◦ Sports Marketing
◦ International Marketing

Product Mix:
◦ The width and depth of a company’s product
offerings.
 Width: number of different product lines a
business manufactures or sells
 Small businesses have fewer product lines; less width
 Depth: number of product items within a product
line
 Company sells three different sizes & three different flavors
they would have a product depth of 9.
 Example: Chocolate = small, medium, large

Working in groups of 1-3; you will be
assigned a Company
◦ Define Product Mix
 At least 10 brands they sell
◦ 3 Examples of Product Lines
◦ 5 Product Items
 Specific items sold by company
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General Motors
Mars
Nestle
Sony
Proctor & Gamble
Kraft
General Mills
Johnson & Johnson
Unilever
Kellogg’s
Coca-Cola
Pepsico
Dr. Pepper/Snapple
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Nike owns
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Nike Golf
Nike Pro
Nike+
Nike Skateboarding
Air Jordan
Converse
Hurley International
◦ NikeTown Retail Stores
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4 Product Lines Examples
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Converse
Basketball
Soccer
Clothing
Could’ve broken it down
by:
◦ Others Sports
◦ Hurley, Golf, Jordan
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Converse All Star Ox
◦ $49.99

Nike Club Swoosh Full Zip Hoodie
◦ $39.99
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Nike Air Max 2013
◦ $179.99
Types of Goods Sold
1. Staple
2. Convenience
3. Shopping
4. Specialty
5. Fashion
6. Seasonal
7. Unsought
8. Industrial
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Product Life Cycle
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Introduction
Growth
Maturity
Decline
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Product
Product
Product
Product
Product
Mix
Depth
Width
Line
Item
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Trading Up
Trading Down
Alteration
Expansion
Contraction

Create 10 Flash cards based on the following
concepts
1. Product Width: Contraction
2. Product Width: Expansion
3. Why would a company want to narrow its
products?
4. Product Depth: Shallow
5. Product Depth: Expansion
6. Product Item
7. Trading Up
8. Trading Down
9. Alteration
10. Product Positioning

Product Width is either narrow or broad
◦ Narrow Product mix occurs when a company offers
a limited number of product lines
 Also known as Contracting
◦ Why would a company want to narrow its product
mix?
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Easier on management
Cost effective
Simplicity
Consistency
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In 2009; General Motors (GM) filed for
bankruptcy protection
They were told they needed to cut back
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GMC
Cadillac
Buick
Chevy
Pontiac
Saturn
Saab
Hummer
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Companies seek to expanding their product
width by making it broader
Expanding allows you
◦ Reach more markets
◦ Gain a competitive edge
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Example of product width is Red Lobster
◦ Specialize in seafood
◦ Sell pasta, chicken, & steak to broaden product mix
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Product Depth expands when more product
items are added to a product line
Why would you expand on a product line?
◦ Wider Variety
◦ Greater Quantity
◦ Dillards choosing to sell more colors, sizes, styles
of Levi Jeans
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A shallow product depth occurs when there
are less products offered in a product line
Why would you contract your product depth?
◦ Cost Effective
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Example would be Red Lobster selling chicken on its menu
 Usually only 2-4 menu options
 Not cost effective to offer a wider variety
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Companies devise strategies for their
products so that they are profitable
Existing product strategies
◦ Alteration
◦ Trading Up
◦ Trading Down
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Alteration occurs when
an existing product is
altered
Improve an established
product with new
design, new package,
&/ or new uses
◦ Example: Jeep Company
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Trading Up
◦ Occurs when a company adds a higher-priced
product to a line
◦ Trying to attract a higher-income market
◦ Want to improve the sales of existing lowerpriced products.
 Prestige of high-priced item makes brand look
better
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Trading Down
Adding a lower-priced item
to a line of prestige
products to encourage
purchases from people who
cannot afford the higherpriced product, but want
the status.

Positioning: actions marketers take to create a
certain image of a product in the minds of the
customers
• In Relation to a Competitor
• A common strategy when a firm is trying to solidify an advantage over another
firm.
• Example: Southwest Airlines promotes itself as the low-cost alternative
• In Relation to a Product Class or Attribute (Features & Benefits)
• http://www.youtube.com/watch?v=YUNjCx7w11k
• In Relation to a Target Market
• Focusing on the unique characteristics of specific users can also be
effective.
• The …For Dummies series of instruction books are attractive to people
who want to learn about a topic from a source that doesn’t assume any
prior knowledge on the reader’s part.
• By Price and Quality
 Offer economy, mid-priced, & luxury lines
 High Price
= Quality
 Low Price
= Greater Value
Ford Mustang
Ford Focus
• Difficult to change
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Absolut Vodka
◦ http://www.youtube.com/watch?v=EL4EsZv_ltU
◦ http://www.youtube.com/watch?v=Rt7eOs7iG2Y

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Flash Cards - After 10 minutes into a lecture
or concept presentation, have students create
a flash card that contains the key concept or
idea. Toward the end of the class, have
students work in pairs to exchange ideas and
review the material.
Product Life Cycle of Mobile Phone
◦ http://www.youtube.com/watch?v=A-y0Q9uE0MM
◦ http://www.youtube.com/watch?v=d-ZOOhsfZ-I