Publisher's Synopsis
Excerpt from A Model for Product Line Decisions
Most firms market a numberc f somewhat similar products or what has been called a product line. Product policies of di versification and new product introduction have been implemented by the widening of the product line. Depth in the product line has emerged within product areas as firms attempt to meet competi tion and satisfy the needs of subsegments of the market. Al though the multiproduct firm has grown in importance, there has not been a corresponding growth in model building and research efforts to help solve the marketing problems of firms offering a line of goods. The purpose of this paper is to develop a theoretical product line model and present an emperical application of the model.
Product line decisions are difficult because the products in the line are not usually independent. They can not be individ ually Optimized and then added Uoproduce optimum product line results. The marketing mix established for one product may effect the sales of another product. This interdependency is the key con sideration in product line decision making.
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