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Describe Product Line Decisions

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A product line is a group of products that are closely related (тесносвязаны) because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges (диапазонецен)

The major product line decision (решение) involves product line length ( длину) —the number of items (элементов) in the product line. The line is too short if the manager can increase profits by adding items; the

line is too long if the manager can increase profits by dropping (сбрасывания) items

A company can expand its product line in two ways: by line filling (наполнения) or line stretching(растяжения).

Product line filling involves adding more items (элементов) within the present range (области) of the line. There are several reasons for product line filling: reaching (достижение) for extra profits, satisfying (удовлетворение) dealers, , being the leading full-line company, and to keep out ( непустить) competitors.

Product line stretching occurs (имеетместо) when a company lengthens its product line beyond(растягивает) its current range. The company can stretch its line downward, upward, or both ways.

Upward Stretch if Companies at the lower end of the market may want to enter the higher end.

Downward Stretchif companiesat the upper end of the market may want to enter downward

Companies in the middle range of the market may decide to stretch their lines in both directions

In some cases, product line length is adequate (достаточна) , but the line needs to be modernized.

 

12 What are the general issues (общиевопросы) of the promotion mix.

A company’s total promotion mix—consists of the specific blend (смесь)of advertising, public relations, personal selling, sales promotion,and direct-marketing tools that the company uses to build customer relationships.

The five major promotion tools (инструментов) are defined (определены) as follows:

• Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods,

or services by an identified sponsor.

• Sales promotion: Short-term incentives to encourage the purchase or sale of a product or

service. Краткосрочные стимулы для поощрения покупки или продажи товара или



услуги.

• Personal selling: Personal presentation by the firm’s sales force for the purpose of making

sales and building customer relationships.

• Public relations: Building good relations with the company’s various publics by obtaining

favorable publicity, building up a good corporate image,

• Direct marketing: Direct connections with carefully targeted individual consumers to

both obtain an immediate response ( немедленныйответ) and cultivate lasting customer relationships.

Each category involves specific promotional tools used to communicate with customers.

For example,

advertising includes, print, Internet, outdoor, and otherforms.

Sales promotion includes discounts, coupons, displays, and demonstrations.

Personal selling includes sales presentations, trade shows, and incentive programs.

Publicrelations (PR) includes press releases, sponsorships, special events, and Web pages.

Anddirect marketing includes catalogs, telephone marketing, kiosks, the Internet, mobile marketing,

and more.

 


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