Bukhara State University

3. Product Mix.

It is a broad term which refers to the total assortment of different commodities marketed by a firm. It is, however, treated as a composite. According to Stanton, “The product mix is the full list of products offered for sale by a company”. It may range from one or two product lines to a combination of several product lines or groups.

Characteristics:

There are four principal characteristics:
(a) Length:
Length of the product mix refers to the total number of items in its product mix.
(b) Depth:
Depth refers to average number of items sold by a company within a single product line.
(c) Width:
Width is judged by the number of different product lines dealt with by a company.
(d) Consistency:
Consistency means how many product lines are closely related in production requirements, distribution process, end use, etc.
These four characteristics of the product mix provide the handles for defining the company’s product strategy.

Advantages:

1 More products mean choice for customers and thereby more consumer satisfaction.
2. Costs of maintaining the sales force are reduced if more products are distributed through the same outlets.
3. Advertising of a wide range of products is likely to yield better results.
4. It may be possible to overcome inefficient middlemen and set up direct distribution to con­sumers and end users.
5. Production of items with a few minor changes in the model results in lowering cost per unit of production.

Factors Influencing Change in Product Mix:

Product mix is affected by several factors and particularly changes in the product may be due to the following factors:
(a) Goodwill of the company
(b) Competitors’ attitude
(c) Financial position of the company
(d) Change in company’s plan
(e) The purchasing power of consumers
(f) The change in demand of a product
(g) The introduction of by-products
(h) Possibility of adding new product with least cost
(i) The existing marketing capacity
(j) Advertising and distribution factors