• The Customer Service Department

• The Customer Service Department

Given the importance of customer service as a marketing tool, many companies have set up strong customer service departments to handle complaints and

adjustments, credit service, maintenance service, technical service and consumer information. Many others have set up hot lines to handle consumer complaints and requests for information. By keeping records on the types of

reel lies t and complaint, the customer service department can press for needed changes in product design, quality control, high­pressure selling and so on. An I active customer service department co­ordinates all die company's services, creates consumer satisfaction and loyalty, and helps the company to further set itself apart from competitors.

Product Line Decisions

We have looked at product strategy decisions such as branding, packaging, labelling and services for individual products. But product strategy also calls for

product line building a product line, A product line is a group of products that are closely

A group of products that related because they function in a similar manner, are sold to the same customer are closely related

groups, are marketed through the same types of outlet, or fall within given price because they function in

ranges. For example, Volvo produces several lines of cars, Philips produces several

a similar manner, are lines of hi­fi systems and Nike produces several lines of athletic shoes. In formu­ sold to the name lating product line strategies, marketers face a number of tough decisions. customer groups, arc

marketed through the same types of outlet, or fall wiihin given price

Product Line­Length Decisions

ranges. Product line managers have to decide on product line length. Product line length

is influenced by company objectives. Companies that want to be positioned as full­line companies, or that are seeking high market share and market growth, usually carry longer lines. Companies that are keen on high short­term prof­ itability generally enrry shorter lines consisting of selected items.

Over time, product line managers tend to add new products either to use up excess manufacturing capacity, or because the sales force and distributors are calling for a more complete product line to satisfy their customers, or because the firm needs to add items to the product line to increase sales and profits.

However, as the manager adds items, several costs rise: design and engin­ eering costs, inventory carrying costs, manufacturing changeover costs, order­ processing costs, transportation costs, and promotional costs to introduce new items. Consequently, the company must plan product line growth carefully. It can systematically increase the length of its product line in two ways: by stretching its line and by filling its line. Every company's product line covers a certain range of

Product Line Decisions 589

Figure 13.5

Product line­sitretching decision

the products offered by the industry as a whoie. For example, BMW ears are located in the medium­high price range of the ear market. Nissan focuses on the

low­to­medium price range. Product line stretching occurs when a company product line stretching lengthens its product line beyond its current range. Figure 13.5 shows that the

Increasing the product company can stretch its line downwards, upwards or both ways.

line by lengthening it beyond its current range.