Description
When you add a line extension that is of better quality than the other products in the line, this is referred to as trading up or brand leveraging or Up-Market Stretch. When you add a line extension that is of lower quality than the other products of the line, this is referred to as trading down or Down-Market Stretch. When you trade down, you will likely reduce your brand equity. You are gaining short-term sales at the expense of long term sales. When you stretch the line in both the directions then its called Two-Way Stretch.
Image anchors are highly promoted products within a line that define the image of the whole line. Image anchors are usually from the higher end of the line's range. When you add a new product within the current range of an incomplete line, this is referred to as line filling.
Price lining is the use of a limited number of prices for all your product offerings. This is a tradition started in the old five and dime stores in which everything cost either 5 or 10 cents. Its underlying rationale is that these amounts are seen as suitable price points for a whole range of products by prospective customers. It has the advantage of ease of administering, but the disadvantage of inflexibility, particularly in times of inflation or unstable prices.
There are many important decisions about product and service development and marketing. In the process of product development and marketing we should focus on strategic decisions about product attributes, product branding, product packaging and labeling and product support services. But product strategy also calls for building a product line.
Read more about this topic: Product Lining
Famous quotes containing the word description:
“An intentional object is given by a word or a phrase which gives a description under which.”
—Gertrude Elizabeth Margaret Anscombe (b. 1919)
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—Henry David Thoreau (1817–1862)
“Whose are the truly labored sentences? From the weak and flimsy periods of the politician and literary man, we are glad to turn even to the description of work, the simple record of the month’s labor in the farmer’s almanac, to restore our tone and spirits.”
—Henry David Thoreau (1817–1862)