Product Mix
PRODUCT MIX
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.
1 Add new product lines (widen product mix)
2 Lengthen each product line.
3 Add more product variants to each product (deepen product mix)
4 More product line consistency or less.
Classification of Products
Consumer Products Business 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.
Business Products
1 Raw Material (Part of another tangible product prior to being processed)
(B) Farm Products (Wheat, Cotton etc.)
(C) Natural Products (Fish, Petroleum etc.)
2 Fabricating
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.
1 Add new product lines (widen product mix)
2 Lengthen each product line.
3 Add more product variants to each product (deepen product mix)
4 More product line consistency or less.
Classification of Products
Consumer Products Business 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.
Business Products
1 Raw Material (Part of another tangible product prior to being processed)
(B) Farm Products (Wheat, Cotton etc.)
(C) Natural Products (Fish, Petroleum etc.)
2 Fabricating