To help you improve your company's product variety and create an attractive marketing mix for customers, we have prepared this simple and practical article. Here you will find:
Product mix is the total number of goods or services that a company sells, either individually or grouped into lines.
Also known as assortment or product portfolio , product mix depends on four dimensions : price, product, point of sale and promotion — the 4Ps of marketing .
If you want to go beyond the question “what is product mix”, read: 4 advantages of having a product portfolio strategy .
What is the difference between product mix and product line?
Product mix is the total
vietnam email addressnumber of products that a company sells in the market. It can include goods and services sold individually or in groups. In other words, it refers to the variety of products .
Product line is a grouping of goods or services similar in function, benefits, target audience, price and distribution channels — that is, it refers to the strategic combination of items.
Product mix x product line: example
Imagine you own a dairy company. Your product mix might include milk, butter, cheese, cream cheese, ricotta cheese, chocolate, and all the other things you sell.
The product line , on the other hand, could be one with breakfast products, or with exclusive products for people with lactose intolerance. Do you see the difference?
Not sure if your marketing mix is balanced? Read: BCG matrix example: dog, cow or star product?
What are the pillars of the product mix?
Once you know what product mix is and how it differs from product line, you can advance in the topic and deepen your knowledge.
Below are the four pillars of a product mix : width, diversity, depth and consistency.
1. Width
The width of a product mix is the total number of products (individuals and lines) that a company offers.
If you own an appliance company, your product range width could be four items. For example: refrigerator, stove, microwave, and blender.
2. Diversity
Product mix diversity is the total number of combinations of goods and services sold by a firm.
If you own a bakery, for example, the combinations of breads, desserts and snacks that a customer can choose from are practically endless. Maria can buy bread and milk, Juan can buy cake and juice, Ana can buy mini bread and ham…
3. Depth
The depth of a product mix is the total number of variations of goods and services sold by a company.
If you own a clothing store where you sell pants, dresses and t-shirts, the depth of your marketing mix depends on the sizes and colors available.
4. Consistency
Product mix consistency refers to the coherence among the goods and services sold by a company.
If you have a cosmetics company, for example, it doesn't make sense to start selling rice and beans. You see?
What are the advantages of product mixing?
Did you know that 53% of shoppers always do online research before purchasing something to ensure they are making the best possible decision?
This means that people are willing to invest their time to find goods and services that meet their needs with excellence. In fact, 65% of shoppers spend 15 minutes or more comparing products online.
Offering a balanced product mix is your best chance to win potential customers' preference and gain relevant market share .
In short, your product mix strategy can be a competitive advantage that will put you ahead in your segment.
If you want to know where you stand in relation to your competitors, read: What is market share?
How to create a product mix?
To create a balanced and relevant product mix, you need to pay attention to the four essential dimensions: price, product, point of sale and promotion. Check it out!
1. Define the price
With an idea for a product or service in mind, the first step is to define the price at which it will be marketed. To do this, you must take into account the fixed and variable costs of placing this item on the market, as well as defining the profit margin you wish to earn. It is also useful to compare the figure obtained with the prices charged by the competition.
Want to make your product mix successful? Read: How to calculate the price of a product in 4 steps .
2. Develop the product
For a product or service to be attractive to the target audience, it must be able to solve a problem, satisfy a need or satisfy a desire. It is also important that it is developed with quality materials or offered by expert professionals.
A product isn't born overnight. Learn what to do along the way: Product Lifecycle: 5 Strategies for Each Stage .
3. Choose the points of sale
The point of sale is where your goods or services will be sold. In this dimension of the product mix, your challenge is to capture the consumer’s attention and interest using persuasion techniques to bring them closer to closing. This is especially necessary for entrepreneurs who do not have a physical store, as online competition is fierce.
