Slide 1

Product line length:

Product Line length refers to the number of products/brands that come under a single product
category or line. Company objectives influence product line length.
Objectives : 3 objectives
To create a product line to induce up-selling
To create a product line that facilitates cross-selling
To create a product line that protects against economic ups and downs.

Slide 2
Line stretching :
Line stretching occurs when a company lengthens its product line beyond its current range,
whether down-market, up-market, or both ways.

Down-market stretch :
When a company positioned in the middle market may want to introduce a lower-priced line.
Up market stretch :
Companies may wish to enter the high end of the market to achieve more growth, realize higher
margins, or simply position themselves as full-line .
Two-way stretch :
Companies serving the middle market might stretch their line in both directions.

Slide 3
Line filling :
A firm can also lengthen its product line by adding more items within the present range. Motives
for line filling include reaching for incremental profits satisfying dealers who complain about
lost sales because of items missing from the line, utilizing excess capacity, trying to become the
leading full-line company, and plugging holes to keep out competitors.

Slide 4 :
Product Mix pricing :
Marketers must modify their price-setting logic when the product is part of a product mix.
Product line pricing :
Companies normally develop product lines rather than single products and introduce price steps.
Optional-feature pricing :
Many companies offer optional products, features, and services with their main product.
Captive product pricing :
Some products require the use of ancillary or captive products. If the captive product is priced
too high in the aftermarket, however, counterfeiting and substitutions can erode sales.
Two part-pricing :
Service firms engage in two-part pricing, consisting of a fixed fee plus a variable usage fee. The
service firm faces a problem in deciding how much to charge for the basic service and how much
for the variable usage.