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
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