What is Product Mix?
Product mix, also known together product assortment or product portfolio, describes the complete collection of assets and/or services available by a firm. A product mix is composed of product lines, i m sorry are associated items the consumersBuyer TypesBuyer types is a collection of categories that explain spending habits of consumers. Consumer actions reveals just how to very nice one to world with different habits tend to use with each other or think that as comparable products or services.
You are watching: A ________ consists of all the product lines and items that a particular seller offers for sale.
Dimensions the a Product Mix#1 Width
Width,also known as breadth, describes the number of product lines available by a company. For example, Kellogg’s product present consist of: (1) Ready-to-eat cereal, (2) Pastries and also breakfast snacks, (3) Crackers and cookies, and (4) Frozen/Organic/Natural goods.#2 Length
Length refers to the total number of products in a firm’s product mix. For example, consider a car agency with two car product currently (3-series and 5-series). Within every product line collection are three species of cars. In this example, the product length of the agency would it is in six.#3 Depth
Depth refers to the number of variations within a product line. For example, continuing with the car company example above, a 3-series product line may offer number of variations such as coupe, sedan, truck, and also convertible. In together a case, the depth the the 3-series product line would be four.#4 Consistency
Consistency describes how carefully related product lines room to every other. It is in recommendation to their use, production, and distribution channelsMarket PositioningMarket positioning refers to the ability to influence customer perception about a brand or product loved one to competitors. The target of market. The consistency the a product mix is beneficial for that company attempting to position themselves as a niche producer or distributor. In addition, consistency aids with ensuring a firm’s brand picture is associated with the product or company itself.
Illustration the a Product Mix
In the illustration above, the product mix mirrors a:Width that 3Length of 5Product heat 1 Depth that 2Product heat 2 Depth the 1Product line 3 Depth that 2
The mix is considered consistent if the commodities in all the product lines are similar.
Example the a Product Mix
Let us take a look in ~ a simple product mix instance of Coca-Cola. Because that simplicity, assume that Coca-Cola oversees two product currently – soft drinks and juice (Minute Maid). Products classified together soft drinks room Coca-Cola, Fanta, Sprite, Diet Coke, Coke Zero, and also products classified as Minute Maid juice room Guava, Orange, Mango, and also Mixed Fruit.
The product (mix) consistency of Coca-Cola would certainly be high, as all products within the product line fall under beverage. In addition, production and also distribution channels remain similar for every product. The product mix that Coca-Cola in the simplified instance would be shown as follows:
Importance that a Product Mix
The product mix that a firm is an important to know as that exerts a profound affect on a firm’s brand imageBrand EquityIn marketing, brand equity describes the worth of a brand and also is determined by the consumer’s perception of the brand. Brand equity can be confident or. Maintaining high product width and depth diversifies a firm’s product risk and reduces dependency on one product or product line. Through that being said, unnecessary or non-value-adding product width diversification can hurt a brand’s image. Because that example, if Apple were to expand its product line to encompass refrigerators, it would certainly likely have actually a negative impact ~ above its brand image with consumers.
In regard come a firm expanding its product mix:Expanding the broad can administer a firm with the capability to accomplish the demands or needs of various consumers and diversify risk.Expanding the depth can administer the capacity to readdress and far better fulfill existing consumers.
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Successfully expanding a product mix can aid a business readjust to changing consumer demand/preferences while reducing product risk and also reliance top top a single product or product line. This, in turn, generates comprehensive profits for the firm. ~ above the various other hand, bad product mix development can result in a detrimental influence on a company’s brand image and profitability.
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