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Identify the elements of a product mix evaluation

Identify the elements of a product mix evaluation
Identify the elements of a product mix evaluation

Product Mix

· Identify the elements of a product mix evaluation
Product:
· Merchandise
· Service
· Brand name
·



Feature
A product is the heart of your organization. It is the tangible or intangible merchandise, service, brand


name, or feature your customers purchase. The success of your

 company depends on your ability to develop and market a product 

consumers want and are willing to buy.


Product Mix:
Product variety offered by your company

You should manufacture and market a variety of products to enhance your company's growth, profit,


and competitive advantage. By offering several products, called a product mix, you can expand your


company's customer base and control a larger share of the market.


For example, a soda maker's product mix might include a cola drink, a lemon-lime drink, a fruit

beverage, and spring water. By offering an assortment of related products, the company can take

advantage of its core competencies, such as manufacturing and 

marketing, and use the same distribution channels to effectively 

create a larger and more diverse customer base.


Offsets fluctuations in sales

Offering more than one product can also help stabilize your 

organization by offsetting fluctuations in

sales. As the sales for one product start to slow down, a new 

product can be introduced to compensate

 for the drop in revenue.
Product Mix Width:

Number of different product lines

You can evaluate your organization's product mix by examining its 

width and depth. The product mix

 width refers to the number of different product lines your company 

offers. For example, your

organization's product lines could include cosmetics, shampoo, and shaving cream.

Product Mix Depth:

Number of products in each product line

Your organization's product mix depth refers to the number of products offered in each product line.

For instance, the depth of your company's cosmetic line may 

include various shades of lipstick, eye shadow, and foundation.


Product Classification

· Identify goods or services classified as consumer products

· Identify goods or services classified as business products

Consumer Products or Business Products

To develop an effective marketing plan, you must be able to 

classify your product or service.

 Products are generally classified as consumer or business products.

Consumer products:
Purchased by consumers for private use

Business products:
Purchased by organizations for company use

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