Product Mix

1. What is a product mix?

• Companies goals only

• The particular assortment of products a business offers to meet its market’s needs and its company’s goals

• Needs of the market only

• One product

2. What is a product item?

• Two-liter bottle of Sun Drop

• Pair of Ariat boots

• Travel-agent certification course

• Bottle of Dawn dish liquid

3. What is a product line?

• Group of related product items.

• One product item.

Where can you see product items?

• Select areas

• Everywhere

• Only at home

• Only at school

4. How do companies classify product lines?

• Product Class

• Customer Group

• Price/Quality

• Distribution Method

Most businesses use which 4 dimensions to describe their product mixes?

• Width

• Depth

• Length

• Long Product Mix

• Consistency

6. Why are product-mix decisions so important?

• • Appealing to the target market

• • Helping to present a consistent company image

• • Affecting profitability

• • Helping deal with competition

Why would a company use an expansion product-mix strategy?

• • To satisfy customers’ desire for variety

• • To offer customers complementaryproducts/• To make more efficient use of company facilities

• • To spread risk over a wider area

• • To increase sales and profits/• To enhance the company’s reputation

• • To appeal to a new market

2. What are the disadvantages of an expansion strategy?

• increases costs of inventory, marketing, transportation, storage, and personnel

• . If the new products are more complex or sophisticated, the sales staff may require additional training to sell them

• Increase sales and profits

• Appeal to a new market

Why would a company use a contraction product-mix strategy?

• • It has lost its appeal to customers.

• • It is no longer appropriate to the company’s goals./• It is no longer profitable.

• • It conflicts with another product in the mix.

• • Its production has become a problem.

• • It has become a legal liability.