The concept of product mix is very wide. The product mix is the total sum of products in the different product lines of a marketing company. The product line includes a broad group of products intended for similar use and having similar physical characteristics. So product mix is a group of similar or consistent products marketed by a company.
American Marketing Association has defined product mix as, The composite product offered for sale by a firm of a business unit. The product mix is the full list of all product offered for sale by a company. The structure of the product mix has two dimensions – breadth and depth.
Therefore, it is clear that total products in different product line the product mix of a marketing company.
Dimensions of Product Mix
Dimensions of product mix can be discussed under four headings:
1. Width of Product Mix
The width of the product mix for a marketing company is measured by the number of product lines carried by the company.
2. Depth of Product Mix
Depth of product mix indicates the total number of products in each product line.
Depth is measured by the assortment of sizes, colors, and models offered within each product line.
3. Consistency of Product Mix
Consistency of product mix indicates the similarities in different product lines.
4. Inconsistency of Product Mix
inconsistency of product mix indicates the heterogeneity of product lines of a company.
A marketing company producing textile, cement, Chemicals, and tires can be termed a company having inconsistency in product mix.
Elements or Factors Affecting Product Mix
The following factors play an important role in the determination of the product mix of a company:
- Technological development has forced marketing companies to change their product mix.
- The input of research and development also plays a vital role in the change of the existing product mix.
- The market is the driving force of the product mix. Changes in interests, fashion, Outlook, income, and value seriously affect the product mix of the company.
- The manufacturing process of certain items also affects product mix. By-products of a particular manufacturing process can be converted into other products. It will expand the existing product lines. 14 Essential Features and the Importance of Product (Explained).
- The product mix is also affected by the long term objectives of the marketing company. In due course of time, the company will add new products to its existing product lines according to its plans.
- Competition is also an important factor which affects product mix.
- Advertisement policies, rules, and regulations also play a vital role in the change in product mix.
Optimum Product Mix
The success of a marketing company depends up to a great extent in the determination of right or optimum product mix. It is not an easy task.
Lack of required products in product lines as well as unnecessary product in product lines, both are harmful to a marketing company.
The current product mix is said to be optimal if no adjustment would enhance the company’s chances of achieving its objectives.
Therefore, the determination of the optimum product mix is a continuous exercise for the marketing company.
With the help of an optimum product mix, a firm can exploit its full marketing capabilities and maximize its profits.
Optimum product mix gives full exposure to the management, Salesforce, and channels of distribution of a marketing company.
Product Mix Strategies
Product mix strategies include positioning of the product, product mix expand and product mix construction.
The positioning of the product strategy includes:
1. Positioning in Relation to a Product Class
This strategy means Associating its products with a product class.
For example, ‘energy saving’, ‘economy model’ etc.
This strategy is used for many food products nowadays ‘low-calorie food’ ‘no fats’ etc.
2. Positioning in Relation to a Competitor
It means launching the product by convincing based that its product is superior to its competitors.
This strategy is suitable for the firm is having a differential advantage over its competitors.
The strategy of Intel Corporation to convince consumers that its processes are superior to its competitors is the best example of it.
3. Positioning by Price and Quality
It means emphasizing on high quality and high or low prices. It is very common in automobile markets.
The emphasize on low price in comparison to performance and comforts.
4. Positioning in Relation to Target Market
In this strategy, target customers are the focal point for positioning the product.
Different products are offered to different types of customers with different prices and quality.
Thus, now you know the Product Mix: Concept Elements Strategies Dimensions.