In addition to learning general information about the product mix, youll also learn how some of the strategy. The relationship between marketing mix and customer decision. Productmix decisions are central to marketing strategy, and are a common feature of. On the contrary, in optional product pricing, we should think of products that can be boughtsold with the main product. As mentioned in the previous example, colgate has 3 product lines. Product positioning is a strategic management decision that determines the place a product should occupy in a given market its market niche. The first of the product mix decisions refers to the product mix width.
Different conceptions of the marketing mix will yield different estimates of profit potential. Product item a specific version of a product that can be designated as a distinct offering among an organizations products. Number of different product lines carries by the company. The marketing mix comprises of four decisions which should be considered before launching a product. Four important dimensions of a product mix can be identified. 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.
Since product strategies are an essential part of companies marketing. For example, patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc. A product is anything that can be acquired by a consumer to satisfy their specific wants and needs. A companys product mix refers to the total number of products that are. Ch8 managing products, product lines, brands, packaging. In general marketing terms, the product decision involves deciding what. Learn more about the product mix in the latest lecture from alanis business academy. The breadth of a product mix shows the different kinds of product lines that firm carries. Nikes product mix essay sample free college essay examples.
Optional product pricing involves setting prices for accessories or options sold with the main product. 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. Nov 08, 2016 learn more about the product mix in the latest lecture from alanis business academy. Pdf product strategies of companies in the fmcg industry. Planning is the most important part of marketing management and marketing managers need to make the right plan for a durable success. Product decisions at the productmix level tend to determine the. Join for free and get personalized recommendations, updates and offers. Since the job scheduling is determined after the optimal product mix is decided, the job scheduling has an effect on setup costs.
Product line and product mix have direct relationship. Decisions on a productmix level product decisions at the productmix level tend to determine the width of a companys productmix. 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. Product mix decision making refers to the decision. 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. Products arent only tangible objects, they can also be services. When a company has many products in a line it has a product mix kotler.
Managing product, product lines, brands, packaging 5 companys decision making on product relates to. Consequently, lp is commonly used to solve for an optimal mix of products that maximizes contribution margin i. This dimension of the product mix represents the extent to which the activities of the firm are diversified. Apr 08, 2020 a product mix is a group of everything a company sells. 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. The width of a product mix refers to how many different product lines the company carries. In the overall product mix decision, a firm needs to consider product line. A new approach to the product mix decision find, read and cite all the research you need on researchgate. 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. Companies must make appropriate decisions regarding the product mix. Although product mix problems are seldom encountered in their simple textbook form in practice, they very frequently constitute important. Managing new product and process development, new york.
Product decisions or policy and strategy are concerned with the management of the products product portfolio and brand management. Relevant costs in product mix decision making seonmin kim. Chapter 8 quiz commonly missed questions correct answers and calculations are in bold. 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 5 ps of marketing product, price, promotion, place, and people are key marketing elements used to position a business strategically. Mba marketing management full notes pdf download mba 2nd. Pdf on aug 1, 1974, jerry wind and others published product portfolio. Marketing mix of 4ps for competitive advantage meera singh1 1 computer department h. 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. The product mix constitutes all individual product items and product lines the company markets.
We speak of captive product pricing when companies make product that must be used along with the main product. But what is a product mix, and what product mix decisions. Consequently, this paper aims to introduce the integrated product mix decision model that does not explicitly include setup costs. It can be argued that product decisions are probably the most crucial as the product is the very epitome of marketing planning. Product mix decisions arise as soon as an organization has several product lines. The impact of promotional tools on consumer buying behavior. This enables an analysis of the constituency of the product mix to be made. Product mix pricing strategies pricing the product mix. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Jan 22, 2018 a product mix is defined as the number of product lines that a company sells. 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. Before turning to the product mix decisions, we first have to know what the product mix actually is. And another decision companies have to make with regard to the.
Pepsico product line delopment is closely relates to product mix because when product line is big then company product mix also developed. Product mix, branding, packaging, labeling, warranties, customer service. Set of all productsitems that a part sellers offers for sale to buyers. Product diversification is a part of product line decisions. A companys product mix has the certain width, length, depth and consistency. What is meant by product line, length, breadth, consistency and depth. Number of different, so if the line is canned soups then you might have certain types of soups. This is related to all the product mix and line decisions we have to take in a. 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. The astrocosmo problem considered earlier is an example. This module will provide you with insights into all of these concepts and also introduce the different stages of the product life cycle. On the other hand a company may have number of product lines each of which may then have a number of products indicating width. Product line depth refers to the number of versions offered of each product in the line.
Product definition a productservice is the most important component of the marketing mix being the centre of focus as the offer to the market. A product line refers to a unique product category or product brand a company offers. Captive product pricing product mix pricing strategies. The aim of this study is to determine the impact of the most used tools of sales promotion in retail sector such as. Total number of items in the product mix of the company. Notwithstanding the widespread inclusion of productmix decisions in marketing simulation games. The product mix is described in terms or width and depth. 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.
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need 2. The length of the product mix shows the number of different products in a product line. The author shows how the best marketing mix can be found under the conditions of limited information. In evaluating a new product idea, it can be misleading to consider only one conception of the products attributes and marketing program. Services are a form of a product that is intangible and doesnt result in ownership of anything kotler. A product mix is a group of everything a company sells. An organisation may have just one product line in its product mix. The product mix, also called product portfolio, is the set of all product lines and items that a company offers for sale. Simply, it shows the number of items in the product line. Product mix decisions in marketing management tutorial 24 may. 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. Products, services, and product mix decisions marketing. Product mix decisions width, length, depth and consistency.
Enrol and complete the course for a free statement of participation or digital badge if. The success of applying marketing mix 4ps in vietnamese. 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. Product mix the perfect product must provide value for a customer the chartered institute of marketing, 2009, p. A product mix is the set of all products and items that a particular seller offers for sale. Product mix decisions in marketing management tutorial 24. Examples for captive product pricing are razor blade cartridges and printer cartridges.
Decisions regarding the product, price, promotion and distribution channels are decisions on the elements of the marketing mix. Jun 27, 2012 set of all product offered for sale by a company. 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. The term product diversification is sometimes called product differentiation. The length of a product mix refers to the total number of items in a particular. Chapter 8 quiz most missed questions chapter 8 quiz.
676 931 144 1578 792 1247 554 684 541 844 607 1234 352 882 701 529 1099 1390 488 737 273 103 726 238 372 968 1008 598 147 1016 421 517 1110 120 297 335 119 113 1174 1187 1326 223