Product Mix Overview Dimensions and Practical Example


Introduction:

A woman posing in front of a fence

The product mix is a marketing term that refers to the number of products a company sells. Product mixes exist on a spectrum from narrow to broad, and there are pros and cons associated with each type. The best approach for any given business will depend on its circumstances, but it’s important to understand the different types of product mixes available.

The Narrowest Product Mix Possible:

A person holding a camera

A business could, in theory, produce a single product. The pros for this would be ease of production and no need to keep track of different products. However, there are also cons associated with producing a single product: namely that if demand were low for one reason or another it would be difficult to respond by shifting focus onto something else. In addition, it might be necessary to make adjustments on the fly if problems came up (a machine breaks down), but only having one product makes this difficult. A better approach might be to produce very similar products; 5 units of Model A3 and 10 units of Model B7. That way some flexibility is retained while still minimizing costs through bulk purchasing and economies of scale.

The Broader Product Mix:

A business with a broader product mix has more options if one product fails to sell. They can also respond to changes in the market more quickly, as they have a wider range of products to offer customers. However, breadth also has its downsides: it can be difficult to manage a large number of products effectively, and it’s often more costly to produce and market a wide range of products. To make the most of a broad product mix, the company must be able to segment its market so that different products can be pitched to different audiences. For example, an outdoor equipment company might sell tents, backpacks, camping st, and fishing rods. While there might be some overlap in terms of customers, each product will have its target market.

Product Mix Dimensions:

The product mix is a marketing term that refers to the number of products a company sells. Product mixes exist on a spectrum from narrow to broad, and there are pros and cons associated with each type. The best approach for any given business will depend on its circumstances, but it’s important to understand the different types of product mixes available.

The two primary dimensions of the product mix are breadth and depth. Breadth is the number of different products a company offers, while depth refers to the number of versions or sizes of each product. For example, a company that sells only lawnmowers would have a narrow product mix in terms of breadth, while a company that sells both manual and electric lawn mowers would have a broader product mix.

Depth can also be classified as either market coverage or product variety. Market coverage is the number of different markets a company sells into, while product variety is the number of different products a company offers within each market. So, for example, a company that sells only women’s shoes would have a limited market coverage (only women’s feet), but a broad product variety (different types of shoes, colors, styles, etc.).

Product Mix – A Practical Example:

To better understand the different dimensions of the product mix, let’s consider a practical example. suppose you own a small business that sells office supplies online. Your product mix might look something like this:

Depth:

Breadth:

Market Coverage:

Product Variety:

Conclusion:

In conclusion, when you’re presenting a product mix to your customers, it is important to make sure that each item in the product bundle offers enough value. In this way, you can ensure that people who may not want one or two of the items feel like they are still getting an excellent deal by buying them altogether. With these considerations and others mentioned in our article about how to build a successful product mix strategy for your company, there should be no doubt that including a well-designed bundle will lead to increased revenue.

Subscribe to our monthly Newsletter
Subscribe to our monthly Newsletter