A product mix is an important consideration for any firm. A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer. Product positioning is a strategic management decision that determines the place a product should occupy in a given market its market niche. For example, if a company owns a line of hygiene products and also owns a line of house cleaning products, all of those products together would constitute the product mix for the company. Set of all productsitems that a part sellers offers for sale to buyers. The product mix is made up of both product lines and individual products. Learn vocabulary, terms, and more with flashcards, games, and other study tools. A product line is a group of related products produced.
A product line is a group of closely related products with similar functions, customer groups, outlets and same price ranges. Product line decisions building a strong product line. Product mix, also known as product assortment or product portfolio, refers to the complete set of products andor services offered by a firm. The width is all about the number of different product lines the company carries. Understanding the basics of a product mix will help you understand why it is so important to your organization. This article develops a mathematical product line model that analyzes the marketing strategy implications of product interdependency.
The product mix is described in terms or width and depth. Product definition a productservice is the most important component of the marketing mix being the centre of focus as the offer to the market. Products can be tangible or intangible services, ideas. It can be argued that product decisions are probably the most crucial as the product is the very epitome of marketing planning. A product line is too short if profits can be increased by adding items. As explained, product mix is a combination of total product lines within a company. The astrocosmo problem considered earlier is an example. When a company has many product lines and groups them together, it creates a product mix collins dictionary has the following definition of the term. Total number of items in the product mix of the company. In modem times on producer or distributor or retailer deals in a single product. This means nothing else than the number of items in a product line. Although product mix problems are seldom encountered in their simple textbook form in practice, they very frequently constitute important. The primary one of the product line decisions is the product line length. Product marketing in a business addresses five important strategic questions.
This enables an analysis of the constituency of the product mix to be made. A product mix is the set of all products a particular seller offers for sale. It offers the ability to expand your customer base by offering more products in more niches. The basic product policy strategy issues at the product line level cluster around the following questions. Product mix and product line understanding product length, width. Product mix decisions the range of products offered by a firm is a critical strategic decision that will determine how the firm and their brands compete in the marketplace and the.
This is related to all the product mix and line decisions we have to take in a companys marketing department. Product mix or product assortment refers to the number of product lines that an organisation offers to its customers. A product line is a group of related products under a single brand sold by the same company. An abbreviated version of bmws prod uct mix appears in exhibit 11. Giving a firms product a name, term, symbol, design, etc that. Diversifies risk and capitalizes on established reputations. Line stretching means lengthening the product line beyond the current range. On the other hand a company may have number of product lines each of which may then have a number of products indicating width. Certainly, the product line is too short if the company could increase profits by adding items to it. The product mix typically con sists of various product lines, which are groups of associated items that consumers tend to use together or think. A product mix consists of product lines, which are associated items that consumers. The differential amount column in panel c of figure 7.
Many companies now a day develop product line instead of a single product. Conclusion every product has got a life cycle and every product will pass through the stage of decline someday. This dimension of the product mix represents the extent to which the activities of the firm are diversified. Line filling means adding more items within the present range of the line. We can differentiate between downward, upward, and 2way. In addition to learning general information about the product mix, youll also learn how some of. A product mix is defined as the number of product lines that a company sells. A product line is a group of products that a company creates under a single brand. Product line product line refers to a group of products that function in a similar manner, sold to the same customer groups via same distribution channels and fall within the same price range product mix product mix is the entire collection or assortment of products or product lines offered by an organisation product line is a group of products that are related to each other in. Pepsico product line delopment is closely relates to product mix because when product line is big then company product mix also developed. When a business has a competitive advantage, it has an edge over its rivals. So product line pricing is setting the price on the base of cost difference between different products in a product line. Product mix width, length, depth, consistency with examples. For example, patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc.
Product mix decisions in marketing management tutorial. It refers to the total number of items in all the product lines in product mix. A company may have a single product line in which case its product mix becomes the number of products being offered in the line length. The breadth of a product mix shows the different kinds of product lines that firm carries. Learn more about the product mix in the latest lecture from alanis business academy. Product mix is an important consideration for businesses that have large product or. Product line breadth refers to how many or how broad is the range of products offered by the firm. The first of the product mix decisions refers to the product mix width. Managing product, product lines, brands, packaging. Decisions regarding the product, price, promotion and distribution channels are decisions on the elements of the marketing mix. Ch8 managing products, product lines, brands, packaging. A product mix consists of various product lines and has a certain width, length, depth, and consistency.
Product decisions or policy and strategy are concerned with the management of the products product portfolio and brand management a product is any offering to the market for attention, acquisition, use or consumption that might satisfy a need. Source of image for our product mix decisions guide article. Expanding the product line is the second one of the product line decisions. In offering a product line, companies normally develop a basic platform and module that can be added to meet different customer requirements. Product mix or product assortment is a set of total number of products lines that a seller offers in the market to its.
Managing product, product lines, brands, packaging 5 companys decision making on product relates to. The example of nike product line includes, footwear, apparel and sports equipment and every product line have similar products what is product mix. Many companies start as a single product item or product line business. A product mix is a group of everything a company sells. The product mix of a company involves all of the products that a company has for sale. Managing product line and product mix business market.
Product mix decision making pmdm definition operations. There are various decisions which the management of a company should take about products we should sell, different categories of products, different versions of products, etc. Product mix overview, dimensions and practical example. But what is a product mix, and what product mix decisions. Product line is a group of related products manufactured or marketed by a single company. In the overall product mix decision, a firm needs to consider product line. A company like hul has numerous product lines like shampoos, detergents, soaps etc. A mathematical modeling approach to product line decisions. Product mix decisions include all of the following activities. Product line and product mix have direct relationship. The combination of all these product lines is the product mix.
But, through effective product line decisions and other strategies, we can extend its profitability period much longer to our benefits. A product line is a group of products that are closely related either because they satisfy a class of need, are used together, are sold to the same customer groups, are marketed through the same type of outlets or fall within given price ranges. Decisions on a productline level important and complex decisions are also made at the product line level, which tend to determine the length of a companys product mix. Four important dimensions of a product mix can be identified. Simply, it shows the number of items in the product line. The marketing mix established for one product may affect the sales of another product. After getting a taste of success and with an availability of more resources, companies decide to expand their product line andor introduce newer product lines in consonance with market opportunities or in response to competitors moves. Product mix and product line understanding product. A product line refers to a unique product category or product brand a company offers. Marketing executives believe that product lines give companies a competitive advantage. The product mix constitutes all individual product items and product lines the company markets. Such products function in similar manner, sold to the same customer group, sold through the same type of outlets, and fall within a same price range. A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlet, or fall within given price ranges.
Decisions on a product line level important and complex decisions are also made at the product line level, which tend to determine the length of a companys product mix. Product is defined as anything that is offered to public for purchase by the company. The product mix could include several lines of products or individual products that do not fall into a line. The complete set of all products a business offers to a market. Both of these product line decisions involve adding items to the line. Product mix, branding, packaging, labeling, warranties, customer service. This is where the concept of product mix and product line decisions occur, this. Number of different product lines carries by the company. Product mix and product line decisions 85 when executives at. Product mix decisions width, length, depth and consistency. Product line depth refers to the number of versions offered of each product in the line.
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