Chapter 3: product range analysis Flashcards
What is another name for range
Catalog
What is range
the set of products of a market segment that a company offers to its customers. For example, hygiene products
What is a line
the set of products in a range that a company offers its customers with common characteristics. For example, deodorants
What is width of a line
number of product lines within the range or offer
What is depth of a line
number of products or references of each product line
what is length of a line
number of products or references manufactured or sold by the company
What are the 6 product range characteristics
Homogeneity
Coherence
Dimension
Stability
Dynamism
Balance
What does Homogeneity mean
There should be a common denominator that links with a market logic to all products that integrate the catalog
* To satisfy a need
* To sell through the same system sales or distribution channels
This predetermines the application of the same “marketing mix” for all the generic product range
What does coherence mean
The range requires a clarity in their composition and consistency in the functions assigned to each product
* Complementaries
* Substitutes
What does dimension mean
Every catalog should have a range extension to be effective for correct and complete positioning to all market requirements
What does Stability mean
The stability of a range has to do with the proportion of products in different stages of development and market age, supplementing those that are substitutes or balancing those that are seasonal
What does dynamism mean?
Is the ability of the catalog to strategically evolve to the changing market and competitive struggle
What does balance mean?
The balance depends on the existence of a pattern in the sales of products in the range, neither too dispersed (which would mean weakness in the use of the strength of some products) nor too concentrated (which would mean failures in coherence dimension and dependence on few product variants).
