Marketing Management (M240)

Graduate School of Business, Stanford University

Product Line

Offering a line of different product variants is often a good way to practice market segmentation, tailoring the product (and price) of the offering slightly for each different target segment. However, segmentation comes at a cost: the increased variety and number of variants will increase the costs associated with manufacturing and logistics. An investment in fFlexible manufacturing can help to reduce those costs, but it is still important for marketing and manufacturing to communicate to ensure that the benefits of expanding the line more than cover the associated costs.

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