Product mix

Product mix

1. Product Mix
Ajilal

2. Product Mix
Productmix,alsoknownasproduct
assortment,referstothetotalnumberofproductlines
thatacompanyofferstoitscustomers.
Forexample,asmallcompanymaysellmultiple
linesofproducts.Sometimes,theseproductlines
arefairlysimilar,suchasdishwashingliquidand
barsoap,whichareusedforcleaninganduse
similartechnologies.Othertimes,theproductlines
arevastlydifferent,suchasdiapersandrazors.The
fourdimensionstoacompany'sproductmix
includewidth,length,depthandconsistency

3. Width
Thewidthofacompany'sproductmixpertainsto
thenumberofproductlinesthatacompanysells.
Foreg:,ifacompanyhastwoproductlines,its
productmixwidthistwo.
Smallandupstartbusinesseswillusuallynothavea
wideproductmix.Itismorepracticaltostartwith
somebasicproductsandbuildmarketshare.Later
on,acompany'stechnologymayallowthe
companytodiversifyintootherindustriesand
buildthewidthoftheproductmix.

4. Length
Productmixlengthpertainstothenumberoftotal
productsoritemsinacompany'sproductmix,accordingto
PhilipKotler'stextbook"MarketingManagement:Analysis,
Planning,ImplementationandControl.
"Foreg;ABCcompanymayhavetwoproductlines,and
fivebrandswithineachproductline.Thus,ABC's
productmixlengthwouldbe10.Companiesthathave
multipleproductlineswillsometimeskeeptrackoftheir
averagelengthperproductline.Intheabovecase,the
averagelengthofanABCCompany'sproductlineisfive.

5. Depth
Depthofaproductmixpertainstothetotal
numberofvariationsforeachproduct.Variations
canincludesize,flavorandanyother
distinguishingcharacteristic.
Forexample,ifacompanysellsthreesizesand
twoflavorsoftoothpaste,thatparticularbrand
oftoothpastehasadepthofsix.Justlikelength,
companiessometimesreporttheaveragedepth
oftheirproductlines;orthedepthofaspecific
productline.

6. Consistency
Productmixconsistencypertainstohow
closelyrelatedproductlinesaretooneanother--in
termsofuse,productionanddistribution.A
company'sproductmixmaybeconsistentin
distributionbutvastlydifferentinuse.
Forexample,asmallcompanymaysellitshealth
barsandhealthmagazineinretailstores.
However,oneproductisedibleandtheotheris
not.Theproductionconsistencyofthese
productswouldvaryaswell.

7. Trading up
Increasingthenumberoffeatures(andtheir
associatedbenefits)ofaproduct,improvingits
quality,orbackingitwithasuperiorlevelofserviceto
justifyahigherprice.Oppositeoftradingdown.
Typeofsellinginwhichthecustomeris
persuadedtobuyamoreexpensiveitem,oralarger
quantity,thanoriginallyintendedinexchangeforan
attractivediscountorsomeotherincentive.

8. Trading down
Reducingthenumberoffeatures(andtheir
associatedbenefits)orthequalityofaproductto
suitthesellingpricedemandedbyitscustomers.
Oppositeoftradingup

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