Define the terms product item, product line, and product mix. A product item is a specific version of a product that can be designated as a distinct offering among an organization’s products. A product line is a group of closely related products offered by an organization. An organization’s product mix includes all the products it sells. Product mix width refers to the number of product lines an organization offers. Product line depth is the number of product items in a product line. Firms modify existing products by changing their quality, functional characteristics, or style. Product line extension occurs when a firm adds new products to existing product lines. Questions 3.1 A local civic organization has asked you to give a luncheon presentation about planned obsolescence. Rather than pursuing a negative approach by talking about how businesses exploit customers through planned obsolescence, you have decided to talk about the benefits of producing products that do not last forever. Prepare a one-page outline of your presentation. 3.2 Go to Unilever’s Web site at http://www.unilever.com. Can Unilever delete anything from its product lines? Visit the company’s product category pages on its “Brands” Web page to see the number of existing products and new products planned. Write a proposal for contracting one of Unilever’s product lines.
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