The first of the product mix decisions refers to the product mix width. A product mix is a group of everything a company sells. The aim of this study is to determine the impact of the most used tools of sales promotion in retail sector such as. Product mix strategies price lining x is a special pricing technique that sets a limited number of prices for specific groups or lines of merchandise. Product mix decisions in marketing management tutorial 24. The impact of promotional tools on consumer buying behavior. Optional product pricing involves setting prices for accessories or options sold with the main product. Nov 08, 2016 learn more about the product mix in the latest lecture from alanis business academy. The success of applying marketing mix 4ps in vietnamese. Marketing mix of 4ps for competitive advantage meera singh1 1 computer department h. Product diversification is a part of product line decisions. A new approach to the product mix decision find, read and cite all the research you need on researchgate. Productmix decisions are central to marketing strategy, and are a common feature of. Product decisions at the productmix level tend to determine the.
Since the job scheduling is determined after the optimal product mix is decided, the job scheduling has an effect on setup costs. Product mix decisions width, length, depth and consistency. Apr 08, 2020 a product mix is a group of everything a company sells. The breadth of a product mix shows the different kinds of product lines that firm carries. The length of a product mix refers to the total number of items in a particular.
Product positioning is a strategic management decision that determines the place a product should occupy in a given market its market niche. Jan 22, 2018 a product mix is defined as the number of product lines that a company sells. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Different conceptions of the marketing mix will yield different estimates of profit potential. On the contrary, in optional product pricing, we should think of products that can be boughtsold with the main product. A companys product mix has the certain width, length, depth and consistency.
The width of a product mix refers to how many different product lines the company carries. This enables an analysis of the constituency of the product mix to be made. Enrol and complete the course for a free statement of participation or digital badge if. When a company has many products in a line it has a product mix kotler. A companys product mix refers to the total number of products that are. Product mix decisions arise as soon as an organization has several product lines. Product item a specific version of a product that can be designated as a distinct offering among an organizations products. On the other hand a company may have number of product lines each of which may then have a number of products indicating width. Pepsico product line delopment is closely relates to product mix because when product line is big then company product mix also developed. Product line and product mix have direct relationship. A product is anything that can be acquired by a consumer to satisfy their specific wants and needs.
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. Number of different, so if the line is canned soups then you might have certain types of soups. The 5 ps of marketing, also known as the marketing mix, are variables that managers and owners control to satisfy customers in their target market, add value to their business. Since product strategies are an essential part of companies marketing. The length of the product mix shows the number of different products in a product line. The product mix, also called product portfolio, is the set of all product lines and items that a company offers for sale. For example, patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc. Planning is the most important part of marketing management and marketing managers need to make the right plan for a durable success. Product definition a productservice is the most important component of the marketing mix being the centre of focus as the offer to the market. Managing product, product lines, brands, packaging 5 companys decision making on product relates to.
In general marketing terms, the product decision involves deciding what. The product mix is described in terms or width and depth. The goods or services that a company produces must be with regard to the needs and the wants of the consumers and the company must be clear if they are providing what the consumers want from them the chartered institute of. In the overall product mix decision, a firm needs to consider product line. The marketing mix comprises of four decisions which should be considered before launching a product. The 5 ps of marketing product, price, promotion, place, and people are key marketing elements used to position a business strategically. Product definition a product service is the most important component of the marketing mix being the centre of focus as the offer to the market. As mentioned in the previous example, colgate has 3 product lines. Decisions regarding the product, price, promotion and distribution channels are decisions on the elements of the marketing mix.
What is meant by product line, length, breadth, consistency and depth. An organisation may have just one product line in its product mix. Product decisions or policy and strategy are concerned with the management of the products product portfolio and brand management. Pdf on aug 1, 1974, jerry wind and others published product portfolio. Product mix, branding, packaging, labeling, warranties, customer service. Learn more about the product mix in the latest lecture from alanis business academy. Product mix pricing strategies pricing the product mix. Four important dimensions of a product mix can be identified. Mar 04, 2016 marketing management notes product mix decisions product mix consists of various product lines that an organisation offers. We speak of captive product pricing when companies make product that must be used along with the main product. In addition to learning general information about the product mix, youll also learn how some of the strategy. And another decision companies have to make with regard to the. The astrocosmo problem considered earlier is an example. Consequently, lp is commonly used to solve for an optimal mix of products that maximizes contribution margin i.
Chapter 8 quiz most missed questions chapter 8 quiz. Before turning to the product mix decisions, we first have to know what the product mix actually is. Marketing mix decisions for new products philip kotler, 1964. The consistency of a product mix refers to how closely related are the companys product lines in terms of characteristics, production process, distribution channels to name just a few. Pdf product strategies of companies in the fmcg industry. The relationship between marketing mix and customer decision. It can be argued that product decisions are probably the most crucial as the product is the very epitome of marketing planning. Ch8 managing products, product lines, brands, packaging. In modeling product mix linear programming lp problems, a common assumption is that fixed costs will not change for decisions made within a relevant range in which revenues and costs are linear.
A product mix is the set of all products and items that a particular seller offers for sale. This module will provide you with insights into all of these concepts and also introduce the different stages of the product life cycle. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need 2. Managing new product and process development, new york. But what is a product mix, and what product mix decisions.
Services are a form of a product that is intangible and doesnt result in ownership of anything kotler. Examples for captive product pricing are razor blade cartridges and printer cartridges. Product decisions or policy and strategy are concerned with the management of the products product portfolio and brand management a product is any offering to the market for attention, acquisition, use or consumption that might satisfy a need. Number of different product lines carries by the company. Jun 27, 2012 set of all product offered for sale by a company. According to alexander 12, when travel agents sell a travel product to a customer, they will charge a percentage of the sales price as an agency commission. Product mix decision making refers to the decision.
Notwithstanding the widespread inclusion of productmix decisions in marketing simulation games. The width is all about the number of different product lines the company carries. Product line depth refers to the number of versions offered of each product in the line. Product mix decisions in marketing management tutorial 24 may. Decisions on a productmix level product decisions at the productmix level tend to determine the width of a companys productmix. Product mix concepts product mix set of all products offered by the company for sale product line a group of related products constitute a product line e. Product mix the perfect product must provide value for a customer the chartered institute of marketing, 2009, p. Mba marketing management full notes pdf download mba 2nd. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Sep 21, 2015 product mix concepts product mix set of all products offered by the company for sale product line a group of related products constitute a product line e.
This is related to all the product mix and line decisions we have to take in a. Captive product pricing product mix pricing strategies. Nikes product mix essay sample free college essay examples. Products, services, and product mix decisions marketing. Relevant costs in product mix decision making seonmin kim. A company may have a single product line in which case its product mix becomes the number of products being offered in the line length. The term product diversification is sometimes called product differentiation. Products arent only tangible objects, they can also be services.
Join for free and get personalized recommendations, updates and offers. This dimension of the product mix represents the extent to which the activities of the firm are diversified. Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership in anything 3. Consequently, this paper aims to introduce the integrated product mix decision model that does not explicitly include setup costs. A product line refers to a unique product category or product brand a company offers. In evaluating a new product idea, it can be misleading to consider only one conception of the products attributes and marketing program. The product mix constitutes all individual product items and product lines the company markets.
Total number of items in the product mix of the company. Chapter 8 quiz commonly missed questions correct answers and calculations are in bold. The author shows how the best marketing mix can be found under the conditions of limited information. Since most products tend to follow a typical product life cycle, it is expedient for companies to maintain an appropriate mix of newly launched products, growth products and mature lines. Simply, it shows the number of items in the product line. However, the product line is a subset of the product mix. Companies must make appropriate decisions regarding the product mix. Set of all productsitems that a part sellers offers for sale to buyers. Although product mix problems are seldom encountered in their simple textbook form in practice, they very frequently constitute important.