A product mix is the set of all products and items that a particular seller offers for sale to buyers. Product mix has a certain width, length, depth, and consistency.
Width:No. of different product lines e.g. P& G carries width of five lines- Detergents, Bath soaps, Toothpaste, Disposable Diapers, Paper Tissues. Length:Total no. of items in its product mix.
Depth:No. of variants of each product in the line.
Consistency:refers to how closely related the various product lines are in end use, production requirements, distribution channels.
The company can expand its business in four ways.
1Add new product lines (widen product mix)
2Lengthen each product line.
3Add more product variants to each product (deepen product mix) 4More product line consistency or less.
Classification of Products
Consumer ProductsBusiness Products
(Use by household consumers for nonbusiness purpose)
Convenience Goods: Frequent purchases with minimum efforts, readily accessible when consumer demands arises.e.g. Soaps, Newspapers, Light bulbs etc.
Shopping Goods: Consumer compares quality, price in several stores before making a purchase. E.g. furniture, fashionable apparel. Specialty Goods: Unique characteristics, strong brand preference and special purchasing efforts. E.g. expensive suits, Photographic equipment etc.
Unsought Goods: New product that the consumer is not yet aware of or a product that the consumer is aware of but does not want right now. E.g. Video Telephone and Encyclopedias.
1 Raw Material (Part of another tangible product prior to being processed) (B)Farm Products (Wheat, Cotton etc.)
(C)Natural Products (Fish, Petroleum etc.)