Product mix factors

factors which influence product mix

1. Product mix Factors influencing product mix Sam Joel Dias , Mcom Shc madanthyar

2. Factors influencing product mix Changes in market demand May be bcz of increase in population Changes in consumer behaviour Increase in income level Cost consideration( cost of production) Advertising and distribution factors Image of the producer- high quality and high price Objective of maximization of profit

3. Competitors -action and reaction Financial resources of the firm Production influences Addition of new products (when rival drops) Better utilization of by products or waste products Ex; sugar factory; - card boards., paper Marketing efforts Demand factor – complementary demand Objectives of the firm- profit maximization

4. Objectives & benefits of product mix Sales growth Market penetration- increasing the share of current market with existing products and with existing uses Market development- expansion of the market creating new uses of existing products. Product development- development of new product to satisfy the existing customers needs& increase in the share of product. Product diversification- development of new products to satisfy new consumer needs and consequent expansion of market. sales stability Profits

5. Product mix strategies Expansion of product mix- either by increasing product lines or increasing number of product items in the line Contraction of product mix – removal of product line, or product item from the product mix Alteration of existing products Positioning of product bicojoy ., godrej etc Trading up and down

6. Trading up addition of high priced products to the low priced products. Trading down opposite of trading up 6. Product differentiation and market segmentation non price competition in markets which are imperfect or monopolistic