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

Two-liter bottle of Sun Drop

Pair of Ariat boots

Travel-agent certification course

Bottle of Dawn dish liquid

Group of related product items.

One product item.

Select areas

Everywhere

Only at home

Only at school

Product Class

Customer Group

Price/Quality

Distribution Method

Width

Depth

Length

Long Product Mix

Consistency

• Appealing to the target market

• Helping to present a consistent company image

• Affecting profitability

• Helping deal with competition

• 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

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

• 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.