Explain in detail product line and product mix pdf

Product mix, also known as product assortment or product portfolio, refers to the complete set of products andor services offered by a firm. The product mix of a company involves all of the products that a company has for sale. The range of products offered by a firm is a critical strategic decision that will determine how the firm and their brands compete in the marketplace and the overall positioning of the brand. It most commonly refers to the 4ps of marketingproduct, price, promotion and place. Product management is an important organizational role. Aug 05, 2014 marketing is simplistically defined as putting the right product in the right place, at the right price, at the right time. These four factors can be controlled by a business to a certain extent. When a business has a competitive advantage, it has an edge over its rivals.

An organizations product mix includes all the products it sells. For instance, portable wireless pc is one product line. Businesses do this to gain an edge in industries where. However, nowadays, the marketing mix increasingly includes several other ps like packaging, positioning, people and even politics as vital mix elements. Amul offers a series of closely related products such as milk, butter, ghee, dahi, yoghurt, ice cream, srikhand, gulab jamun, flavoured milk, chocolate, etc. Introduction stage this stage of the cycle could be the most expensive for a company launching a new. Companies may split their product mix into groups known as product lines. In comparison to product bundling, which is a strategy of offering more than one product for promotion as one combined item to create differentiation and greater value, product lining consists of selling different related products individually. Number of different product lines carries by the company. Describe the relationship between product line breadth and the product. This is where the concept of product mix and product line decisions occur, this article clearly explains the differences between product mix and product line in a detailed manner along with examples. This means nothing else than the number of items in a product line. Product line is a group of related products manufactured or marketed by a single company. Product line decisions building a strong product line.

It helps it stand out from the clutter of products and names. Jun 08, 2016 product positioning definition and the various types of product positioning strategies. Define the terms product item, product line, and product mix. Below, we are going to present the informal classification of products based on variables such as. The product mix is a crucial tool in determining a products offering to the customer. A project manager is responsible for a single part of a product lifecycle product development, while a product managers responsibility is to lead a product from the germ of an idea to launch, focusing on features, business value, and. The product manager is responsible for the strategy, roadmap. The complete set of all products a business offers to a market. Product line a product line is a group of similar products with slight variations to satisfy the different needs of consumers.

An organisations product line is a group of closely related products that are considered a unit because of marketing, technical or enduse considerations. At each product level, more customer value is added. Product portfolio management is one of the most crucial elements of the entire business strategy as it helps the company to attain its overall business objectives and plan the future line of products accordingly it works as a significant tool for the corporate financial planning of the firm and also for the investors conducting the equity research analyzing the return on investments. The four dimensions to a companys product mix include width, length, depth and consistency. Product mix or product assortment is a set of the total number of products lines that a seller offers in the market to its buyers. Companies employ different strategies to expand their product line depth, which refers. The article covers the original concept of the 4 ps of marketing mix product, place, price, and promotion with an example and template for your business. A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlet, or fall within given price ranges.

Following are some of the three product classification of industrial products. In order to analyse each product line, product line managers need to know two factors. Product positioning can be defined as the position or place a product resides in the consumers mind with respect to the competing product. It is the set of all product lines and items that a particular company offers to buyers. The product mix includes both product lines and product items. Pricing can be defined as a process of determining the value that is received by an organization in exchange of its products or services. For example, if a company owns a line of hygiene products and also owns a line of house cleaning products, all of those products together would constitute the product mix for the company. Marketing executives believe that product lines give companies a competitive advantage. Product positioning definition types of product positioning. The 4ps make up a typical marketing mix price, product, promotion and place. Ch8 managing products, product lines, brands, packaging.

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products. Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. Simply, it shows the number of items in the product line. Explain various types of industrial goods and their features. These needs range from core needs to psychological needs. A product line is a group of closely related products with similar functions, customer groups, outlets and same price ranges.

For example, two wheelers including various models constitutes one of the product lines of bajaj company. Product mix decisions width, length, depth and consistency. But if the same lawn mower is purchased for use in landscaping business, then this is categorized as an industrial product. The five product levels model provides a way to show the different levels of need customers have for a product. It refers to the total number of items in all the product lines in product mix. The product mix is a subset of the marketing mix and is an important part of the business model of a company. Mar 14, 2020 the width of the product mix is equal to the number of product lines within a company. Your marketing mix should be something you pay careful attention to because the success of your business depends on it. The product mix is made up of both product lines and individual products. Discuss different productmix and productline strategies. Line filling means adding more items within the present range of the line. The width is all about the number of different product lines the company carries. So product line pricing is setting the price on the base of cost difference between different products in a product line.

Difference between product mix and product line top differences. Marketing theories the marketing mix from 4 ps to 7 ps. Since 1575, the word product has referred to anything produced. The width of the mix refers to the number of product lines the company has to offer. Formulating linear programming problems one of the most common linear programming applications is the product mix problem. While marketing a tourism product, the sales or marketing person insists on the positive facets of the following four components. Characteristics of a raw material or finished good which make it distinct from other products. Product mix overview, dimensions and practical example. Jun 27, 2012 set of all product offered for sale by a company. A product mix is the set of all product lines and items that a particular seller offers for the sale to buyers. As mentioned in the previous example, colgate has 3 product lines. Understanding the marketing mix concept 4ps cleverism. The price of a product is influenced by a number of factors, such as manufacturing cost, competition, market conditions, and quality of the product. The width of a product mix refers to how many different product lines a company carries.

Product line is a group of products that are closely related either because they satisfy a class of need, or used together, are sold to the same customer group, are marketed through the same types of outlets, or fall within given price ranges or that are considered. The astrocosmo problem considered earlier is an example. Product mix is defined as the set of all products and items that a particular seller offers for sale. Tourism marketing is different because the customer purchases a series of services. In general terms, marketing mix is a variety of different factors that can influence a consumers decision to purchase a product or use a service. A product item is a specific version of a product that can be designated as a distinct offering among an organizations products. At the 4 th level marketer prepares an augmented product that meets customers desires beyond expectations. Visit our marketing theories page to see more of our marketing buzzword busting blogs marketing is a continually evolving discipline and as such can be one that companies find themselves left very much behind the competition if they stand still for too long.

For example, patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc. The figure above shows 4ps of marketing with its types. Expanding the product line is the second one of the product line decisions. Each element is crucial in its own right and needs to be given due focus. Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the mind of the consumer. The marketing mix is a business tool used in marketing products. Target market a market is a set of all actual and potential buyers. Pdf on aug 1, 1974, jerry wind and others published product portfolio. A product line manager will manage the product line and may manage a group of product managers who are responsible for each product in the line. Combination of all the product lines constitute the product mix. A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same channels or fall within given price range. Product mix, product line and product items your article library. It is a process used by marketers to determine the best possible way to promote the product attributes to the target market according to the customer needs and wants. The first of the product mix decisions refers to the product mix width.

Thus, taking the above example, if there are 4 product lines within the company, and 10 products within each product line, than the product line width is 4 only. It acts as a crucial element of generating revenue for an organization. The marketing mix is often crucial when determining a product or brands unique selling point and is often synonymous with the four ps. Product mix or product assortment refers to the number of product lines that an organisation offers to its customers. A product line is a group of related products under a single brand sold by the same company.

Product mix components in an attempt to satisfy customer needs, marketers must make many decisions about their product and product mix. Many companies now a day develop product line instead of a single product. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in. Attributes include size, color, functionality, components and features that affect the product s appeal or acceptance in the market. A product line is a group of closely related products offered by an organization. Both of these product line decisions involve adding items to the line. The product mix is the variety of products a company produces or sells to the marketplace. The primary one of the product line decisions is the product line length. Product mix and product line understanding product length. In general, a product is defined as a thing produced by labor or effort or the result of an act or a process. The company would like to determine how many units of each product it should produce to maximize overall profit given its limited resources.

Product differentiation is a marketing strategy whereby businesses attempt to make their product unique to stand out from competitors. Managing product, product lines, brands, packaging 2 augmented product. Understand the width, length, depth, and consistency of a companys product mix. There are three fundamental types of product classification which are durable and non durable products and pure services. The mix is considered consistent if the products in all the product lines are similar. Retailers carry a mixture of products to satisfy various customers. However, the product line is a subset of the product mix. Oct 15, 20 for this reason philip kotler states that there are five product levels that can be identified and developed. The products in the product line can come in various sizes, colours, qualities, or prices. For example product mix of bajaj company has more than 100 items in various product lines, such as fans, bulbs and tubes, heaters, motorbikes, shooters, richshow, processing machines, and many other ranges. The product mix is the full list of all products offered for the sale by the company. This dimension of the product mix represents the extent to which the activities of the firm are diversified. Product mix or product assortment is a set of total number of products lines that a seller offers in the market to its. Detail the classification of consumer goods along with their features.

Comprehend the concept of product mix, product line. The product mix could include several lines of products or individual products that do not fall into a line. These four components help determine a clear and effective strategy to bring a product to market. Thus, product line width is a depiction of the number of product lines which a company has. Apr 20, 2014 the total composite of products offered by a particular organization. Several concepts and ideas combined together to formulate final strategies helpful in making a brand popular amongst the masses form marketing mix. The consumer products are afterwards divided based on preference for shopping habits or durability and tangibility. In the area of product mix, marketing decisions are width, length, depth and consistency. Two or more products are usually produced using limited resources. This strategy is used for setting the price for entire product line. Therefore, the pricing decisions of an organization have a direct impact on its success.

The breadth of a product mix shows the different kinds of product lines that firm carries. Companies sell multiple product lines under their various brands. Durable products are those products, which are used for longer period of time, such as freezer, car, mobile phones, shoes, and tv, etc. The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. Total number of items in the product mix of the company.

This represents a wide product mix 3m, for example, makes a large assortment of goods that are thought to be related in the sense that they use the firms ability to bond. Each of the four ps is a variable you control in creating the marketing mix that will attract customers to your business. Certainly, the product line is too short if the company could increase profits by adding items to it. Although product mix problems are seldom encountered in their simple textbook form in practice, they very frequently constitute important. The example of nike product line includes, footwear, apparel and sports equipment and every product line have similar products what is product mix. Product mix, also known as product assortment or product portfolio, refers to the complete set of.

Though this sounds like an easy enough proposition, a lot of hard work and research needs to go into setting this simple definition up. Four important dimensions of a product mix can be identified. These are called the 4ps and are product, price, promotion, and place. Dec 16, 2017 a basic product classification can be made based on consumer and business products.

Describe how a company can build and manage its product lines. Product line can be understood as an array of related products, under a specific brand, offered by a particular company to its customers. The word product stems from the verb produce, from the latin producere to lead or bring forth. For this reason philip kotler states that there are five product levels that can be identified and developed. Product managers are typically found at companies that are building products or technology for customer or internal use. Apr 08, 2020 a product mix is a group of everything a company sells.

A product line is a group of products that are closely related together based on similar characteristics. Oct 19, 2015 for example, if a lawn mower product is purchased for use around the house, then this lawn mower is categorized in the consumer product. The basic product policy strategy issues at the product line level cluster around the following questions. Product mix width, length, depth, consistency with examples. Product mix includes product line, packaging, and brand development. Five product levels philip kotler marketing training from epm. A product line often evolves, as manufacturers want to take advantage of a brands value and the success of other products in the mix. Depth refers to the number of variations within a product line. As explained, product mix is a combination of total product lines within.

In order to shape this abstract value, philip kotler uses five product levels in which a product is located or seen from the perception of the consumer. Product mix constitute width, length, depth and consistency. Total no of product lines in which company is dealing is called product mix product lines individual product group of products within the product mix that are closely related closely related products under the same product, which may differ in the price, color. Important and complex decisions are also made at the product line level, which tend to determine the length of a companys product mix.

Explanation of the types of consumer and industrial goods. Such products function in similar manner, sold to the same customer group, sold through the same type of outlets, and fall within a same price range. Some firms have one very focused or narrow product line e. The tourism being a service sold to the customers, tourist experience is the product, which is intangible, and nonstorable. Promotion is product exposure and public relations efforts via advertising through the channels mentioned above as well as word of mouth, direct mail, email marketing and social media. A product line is a group of related products produced.

A product line refers to a unique product category or product brand a company offers. The technical component is supposed to manage product line development and evolution, thus the complete product line life cycle. These 5 product levels indicate the value that consumers attach to a product. In the overall product mix decision, a firm needs to consider product line. And if even one element is off the mark, a promising product or service can fail completely and end up costing the company. Aug 06, 2014 the marketing mix is a tool that is made up of four unique but interconnected and interdependent variables.

An organization, while setting the prices of its products, needs to ensure that prices must cover costs incurred for producing products and profit margins. Promotion is a communication tool that encapsulates the first 3 ps by putting the right product in the right place, at the right price, at the right time, with the goal of it being irresistible to customers. Product marketing in a business addresses five important strategic questions. Product line product line refers to a group of products that function in a similar manner, sold to the same customer groups via same distribution channels and fall within the same price range product mix product mix is the entire collection or assortment of products or product lines offered by an organisation product line is a group of products that are related to each other in. The result is one possible realization for the technical component management and evolution in pulse see figure 1. Marketing mix a mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix. A companys product mix has a certain width, length, depth and consistency. When a company has many product lines and groups them together, it creates a product mix collins dictionary has the following definition of the term. A product mix consists of product lines, which are associated items that consumers. It emphasizes hows and whys of approaching marketing in todays online world and explains an extended concept of 7 ps of marketing.