Product mix, also known as product assortment, refers to the total number of product lines that a company offers to its customers.
The product lines may range from one to many and the company may have many products under the same product line as well.
What is product bundle pricing
Price bundling (product bundling or product-bundle pricing) is a marketing strategy that combines two or more products to sell them at a lower price than if the same products were sold individually.
The bundle pricing technique is popular in retail and eCommerce as it offers more value for the price.
What is product line according to Philip Kotler
Philip Kotler: “Product line is a group of products that are closely related because they function in a similar way, are sold to same customer groups, are marketed through the same type of outlets, or fall within given price range.”
Thus, product line is the group of similar products.
How should we price your products?
- Add up your variable costs (per product) First and foremost, you need to understand all of the costs involved in getting each product out the door
- Add a profit margin
- Don’t forget about fixed costs
How is pricing determined
Price is dependent on the interaction between demand and supply components of a market.
Demand and supply represent the willingness of consumers and producers to engage in buying and selling.
An exchange of a product takes place when buyers and sellers can agree upon a price.
What is product lifecycle pricing
Product life cycle pricing is a strategy for selling products in which pricing correlates with a product’s location in its life cycle.
There are four phases within the life cycle, including launch, growth, maturity and declination.
What is a product line extension strategy
Product line extension is a marketing strategy that uses an established brand to introduce a new item into the same product line.
The new item may differ slightly from what a company already offers, such as in flavor, color, form, ingredients or packaging size.
What is included in product mix pricing?
- Let us discuss each type of product mix pricing in detail
- 1) Product line pricing
- 2) Optional feature pricing
- 3) Captive product pricing
- 4) Two part pricing
- 5) By Product pricing
Why proper product line is important in any business
The product line is considered one of the best marketing strategies that companies often use to expand market reach by capturing the sales of customers and already loyal buyers of the brand.
What is a price lining strategy
Price lining is the practice of releasing multiple versions of the same product or service at different price points simultaneously.
It gives the impression that a product has both budget-friendly, standard options and premium options with extra features and benefits.
How many types of product mix pricing are there
The five product mix pricing strategies are: Captive product pricing – complementary products. Product line pricing – the products in the product line.
Product bundle pricing – several products.
What is product line depth
Products under a product line can be related by functionality, target market, price range, or brand.
Product line depth refers to the number of products offered under a product line.
What are the different approaches in pricing
What are the 4 major pricing strategies? Value-based, competition-based, cost-plus, and dynamic pricing are all models that are used frequently, depending on the industry and business model in question.
What are the main product line strategies
There are four key product mix strategies: Expansion: A company increases the number of product lines or depth (i.e., product variations) within lines.
Contraction: A company narrows its product mix to eliminate lower-performing products or lines or to simplify remaining products or lines.
What is the length of a product line
Product Line length refers to the number of products/brands that come under a single product category/line.
Marketeers must make a major trade-off. Having too many brands/products under a single product category or having one or two effective & revenue-generating brands ?
What are the five product mix pricing strategies?
- Product line pricing – the products in the product line
- Optional product pricing – optional or accessory products
- Captive product pricing – complementary products
- By-product pricing – by-products
- Product bundle pricing – several products
What are the 5 product mix pricing strategies?
- Captive product pricing – complementary products
- Product line pricing – the products in the product line
- Product bundle pricing – several products
- Optional product pricing – optional or accessory products
- By-product pricing – by-products
Which pricing strategy is also known as two part pricing
Two-Part Pricing (also called Two Part Tariff) = a form of pricing in which consumers are charged both an entry fee (fixed price) and a usage fee (per-unit price).
Examples of two-part pricing include a phone contract that charges a fixed monthly charge and a per-minute charge for use of the phone.
What is the main benefit of adding a new product line
Product diversification helps you retain your current customers by offering them new, exciting parts of your brand.
This not only increases your revenue, but it also decreases costs. Keep in mind that customer retention is significantly cheaper than customer acquisition.
What is price in 4ps of marketing
2. Price. Price is the amount that consumers will be willing to pay for a product.
Marketers must link the price to the product’s real and perceived value, while also considering supply costs, seasonal discounts, competitors’ prices, and retail markup.
What is product bundle pricing strategy
Bundle pricing is a strategy where companies combine complementary products / services together and offer them at a single (often reduced) price.
These bundles have a greater perceived value to customers and bring many benefits to the company such as increased average revenue per user (ARPU) and user engagement.
What is new product pricing strategy
Pricing strategies tend to change as a product goes through its product life cycle.
One stage is particularly challenging: the introductory stage. This is called New Product Pricing.
When companies bring out a new product, they face the challenge of setting prices for the very first time.
What are the five major pricing issues a manufacturer is likely to face
There are five major pricing issues a manufacturer is likely to face: (1) pricing control in the channel, (2) the impact of major price policy changes, (3) the passing of price increases through the channel, (4) use of price incentives, and (5) the problems created by “gray market” and “free riding”.
What is the most common method used for pricing
Hence the most common method used for pricing is cost plus or full cost pricing.
Why is pricing of services difficult
Pricing Your Services Pricing services is more difficult than pricing products because you can often pinpoint the cost of making a physical product but it’s more subjective to calculate the worth of your counsel, your staff’s expertise, and the value of your time.
Why is optional product pricing used
When businesses use optional feature pricing, they sell a product at a lower rate, and rely on the sales of that product’s accessories to boost profit.
Using this practice may help companies bring in more revenue and sell more inventory.
What are the 3 categories of pricing issues
Issues that arise in the setting of prices can be divided into three categories: (1) the question of interactive versus fixed prices, (2) the pattern of an organization’s prices, and (3) how a price can be expressed when communicated to potential buyers.
What factors affect pricing
Some of the internal factors influencing pricing are:- 1. Organisational Factors 2. Marketing Mix 3.
Product Differentiation 4. Cost of the Product 5.
What could be issues in pricing decisions
These factors include the offering’s costs, the customers whose needs it is designed to meet, the external environment—such as the competition, the economy, and government regulations—and other aspects of the marketing mix, such as the nature of the offering, the stage of its product life cycle, and its promotion and
Why is pricing strategy important
Benefits of a good pricing strategy Symbolises value: Consumers tend to associate less expensive products with cheap, sometimes shoddy, production values.
Products of a higher price tend to be associated with higher value. Attract buyers: If a price is too high, the customer may not be able to afford it.
Citations
https://blog.pricebeam.com/strategies-for-product-lifecyle-pricing
https://www.yourarticlelibrary.com/marketing/product/product-mix-product-line-and-product-items/48614
https://www.keepsolid.com/goals/glossary/product-mix-strategy
