A product line manager will manage the product line and may manage a group of product managers who are responsible for each product in the line. Depth refers to the number of variations within a product line. The product mix could include several lines of products or individual products that do not fall into a line. The complete set of all products a business offers to a market. Difference between product mix and product line top differences. The article covers the original concept of the 4 ps of marketing mix product, place, price, and promotion with an example and template for your business. Ch8 managing products, product lines, brands, packaging. The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products. Companies employ different strategies to expand their product line depth, which refers. Your marketing mix should be something you pay careful attention to because the success of your business depends on it. Total no of product lines in which company is dealing is called product mix product lines individual product group of products within the product mix that are closely related closely related products under the same product, which may differ in the price, color.
Target market a market is a set of all actual and potential buyers. When a company has many product lines and groups them together, it creates a product mix collins dictionary has the following definition of the term. The first of the product mix decisions refers to the product mix width. Such products function in similar manner, sold to the same customer group, sold through the same type of outlets, and fall within a same price range. At each product level, more customer value is added. The product manager is responsible for the strategy, roadmap. Though this sounds like an easy enough proposition, a lot of hard work and research needs to go into setting this simple definition up. Discuss different productmix and productline strategies. A project manager is responsible for a single part of a product lifecycle product development, while a product managers responsibility is to lead a product from the germ of an idea to launch, focusing on features, business value, and. Visit our marketing theories page to see more of our marketing buzzword busting blogs marketing is a continually evolving discipline and as such can be one that companies find themselves left very much behind the competition if they stand still for too long. The basic product policy strategy issues at the product line level cluster around the following questions. A product mix is the set of all product lines and items that a particular seller offers for the sale to buyers.
Jun 27, 2012 set of all product offered for sale by a company. This role evolved from the brand manager position that is often found at consumer packaged goods companies. This is where the concept of product mix and product line decisions occur, this article clearly explains the differences between product mix and product line in a detailed manner along with examples. Pdf on aug 1, 1974, jerry wind and others published product portfolio. Product line is a group of products that are closely related either because they satisfy a class of need, or used together, are sold to the same customer group, are marketed through the same types of outlets, or fall within given price ranges or that are considered. Below, we are going to present the informal classification of products based on variables such as. As mentioned in the previous example, colgate has 3 product lines. The product mix of a company involves all of the products that a company has for sale. Introduction stage this stage of the cycle could be the most expensive for a company launching a new. The primary one of the product line decisions is the product line length. In the overall product mix decision, a firm needs to consider product line.
The product mix is made up of both product lines and individual products. A product mix consists of product lines, which are associated items that consumers. This represents a wide product mix 3m, for example, makes a large assortment of goods that are thought to be related in the sense that they use the firms ability to bond. Product line product line refers to a group of products that function in a similar manner, sold to the same customer groups via same distribution channels and fall within the same price range product mix product mix is the entire collection or assortment of products or product lines offered by an organisation product line is a group of products that are related to each other in. For example, patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc. However, nowadays, the marketing mix increasingly includes several other ps like packaging, positioning, people and even politics as vital mix elements. Detail the classification of consumer goods along with their features. For example, two wheelers including various models constitutes one of the product lines of bajaj company. Product managers are typically found at companies that are building products or technology for customer or internal use. In the area of product mix, marketing decisions are width, length, depth and consistency. The word product stems from the verb produce, from the latin producere to lead or bring forth. 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. The width of the mix refers to the number of product lines the company has to offer. Thus, taking the above example, if there are 4 product lines within the company, and 10 products within each product line, than the product line width is 4 only.
Tourism marketing is different because the customer purchases a series of services. As explained, product mix is a combination of total product lines within. Each of the four ps is a variable you control in creating the marketing mix that will attract customers to your business. And if even one element is off the mark, a promising product or service can fail completely and end up costing the company. Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. There are three fundamental types of product classification which are durable and non durable products and pure services. Four important dimensions of a product mix can be identified. Following are some of the three product classification of industrial products. Apr 20, 2014 the total composite of products offered by a particular organization. These 5 product levels indicate the value that consumers attach to a product. Certainly, the product line is too short if the company could increase profits by adding items to it. The 4ps make up a typical marketing mix price, product, promotion and place. Attributes include size, color, functionality, components and features that affect the product s appeal or acceptance in the market.
Mar 14, 2020 the width of the product mix is equal to the number of product lines within a company. Product mix width, length, depth, consistency with examples. Line filling means adding more items within the present range of the line. The result is one possible realization for the technical component management and evolution in pulse see figure 1. Marketing theories the marketing mix from 4 ps to 7 ps. The tourism being a service sold to the customers, tourist experience is the product, which is intangible, and nonstorable. The company would like to determine how many units of each product it should produce to maximize overall profit given its limited resources. For instance, portable wireless pc is one product line. A product line is a group of closely related products offered by an organization. A new approach to the product mix decision find, read and cite all. Durable products are those products, which are used for longer period of time, such as freezer, car, mobile phones, shoes, and tv, etc.
Number of different product lines carries by the company. The consumer products are afterwards divided based on preference for shopping habits or durability and tangibility. Describe how a company can build and manage its product lines. Thus, product mix means total number of products items offered by the company. Product mix decisions width, length, depth and consistency. It is a process used by marketers to determine the best possible way to promote the product attributes to the target market according to the customer needs and wants. Product line can be understood as an array of related products, under a specific brand, offered by a particular company to its customers. It helps it stand out from the clutter of products and names. Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the mind of the consumer. An organization, while setting the prices of its products, needs to ensure that prices must cover costs incurred for producing products and profit margins. These four components help determine a clear and effective strategy to bring a product to market.
It is the set of all product lines and items that a particular company offers to buyers. Dec 16, 2017 a basic product classification can be made based on consumer and business products. A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same channels or fall within given price range. A product line refers to a unique product category or product brand a company offers. Product mix components in an attempt to satisfy customer needs, marketers must make many decisions about their product and product mix.
These four factors can be controlled by a business to a certain extent. However, the product line is a subset of the product mix. Companies sell multiple product lines under their various brands. Product mix and product line understanding product length, width. In order to analyse each product line, product line managers need to know two factors. The technical component is supposed to manage product line development and evolution, thus the complete product line life cycle. In order to shape this abstract value, philip kotler uses five product levels in which a product is located or seen from the perception of the consumer.
The four dimensions to a companys product mix include width, length, depth and consistency. The product mix is the variety of products a company produces or sells to the marketplace. These are called the 4ps and are product, price, promotion, and place. The five product levels model was developed by philip kotler in the 1960s. Jun 08, 2016 product positioning definition and the various types of product positioning strategies.
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. Although product mix problems are seldom encountered in their simple textbook form in practice, they very frequently constitute important. A product line is a group of products that are closely related together based on similar characteristics. For example, hmt company produces watches, machines. An organisations product line is a group of closely related products that are considered a unit because of marketing, technical or enduse considerations. Product mix, also known as product assortment or product portfolio, refers to the complete set of. Therefore, the pricing decisions of an organization have a direct impact on its success. Describe the relationship between product line breadth and the product. These needs range from core needs to psychological needs.
For this reason philip kotler states that there are five product levels that can be identified and developed. Product mix or product assortment refers to the number of product lines that an organisation offers to its customers. The width of a product mix refers to how many different product lines a company carries. A product line often evolves, as manufacturers want to take advantage of a brands value and the success of other products in the mix. Product mix, also known as product assortment or product portfolio, refers to the complete set of products andor services offered by a firm. Several concepts and ideas combined together to formulate final strategies helpful in making a brand popular amongst the masses form marketing mix. Some firms have one very focused or narrow product line e. Businesses do this to gain an edge in industries where. Product mix or product assortment is a set of the total number of products lines that a seller offers in the market to its buyers. Two or more products are usually produced using limited resources. All of these product lines when grouped together form the product mix of the company.
So product line pricing is setting the price on the base of cost difference between different products in a product line. Characteristics of a raw material or finished good which make it distinct from other products. The product mix is the full list of all products offered for the sale by the company. A companys product mix has a certain width, length, depth and consistency. The astrocosmo problem considered earlier is an example. Both of these product line decisions involve adding items to the line. Product mix constitute width, length, depth and consistency. Combination of all the product lines constitute the product mix. Amul offers a series of closely related products such as milk, butter, ghee, dahi, yoghurt, ice cream, srikhand, gulab jamun, flavoured milk, chocolate, etc. The products in the product line can come in various sizes, colours, qualities, or prices.
Product line is a group of related products manufactured or marketed by a single company. For example, if a company owns a line of hygiene products and also owns a line of house cleaning products, all of those products together would constitute the product mix for the company. Managing product, product lines, brands, packaging 2 augmented product. Important and complex decisions are also made at the product line level, which tend to determine the length of a companys product mix. An organizations product mix includes all the products it sells. A product item is a specific version of a product that can be designated as a distinct offering among an organizations products. Explanation of the types of consumer and industrial goods. Product portfolio management is one of the most crucial elements of the entire business strategy as it helps the company to attain its overall business objectives and plan the future line of products accordingly it works as a significant tool for the corporate financial planning of the firm and also for the investors conducting the equity research analyzing the return on investments. Product management is an important organizational role. Thus, product line width is a depiction of the number of product lines which a company has. This strategy is used for setting the price for entire product line. But if the same lawn mower is purchased for use in landscaping business, then this is categorized as an industrial product. Apr 08, 2020 a product mix is a group of everything a company sells. Product line decisions building a strong product line.
Five product levels philip kotler marketing training from epm. Companies may split their product mix into groups known as product lines. A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlet, or fall within given price ranges. At the 4 th level marketer prepares an augmented product that meets customers desires beyond expectations. The figure above shows 4ps of marketing with its types. Product mix includes product line, packaging, and brand development. When a business has a competitive advantage, it has an edge over its rivals. Define the terms product item, product line, and product mix. It refers to the total number of items in all the product lines in product mix. Product positioning definition types of product positioning. It emphasizes hows and whys of approaching marketing in todays online world and explains an extended concept of 7 ps of marketing. Since 1575, the word product has referred to anything produced. Marketing mix a mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix.
Retailers carry a mixture of products to satisfy various customers. Explain various types of industrial goods and their features. In comparison to product bundling, which is a strategy of offering more than one product for promotion as one combined item to create differentiation and greater value, product lining consists of selling different related products individually. Product line a product line is a group of similar products with slight variations to satisfy the different needs of consumers. Product differentiation is a marketing strategy whereby businesses attempt to make their product unique to stand out from competitors. Aug 05, 2014 marketing is simplistically defined as putting the right product in the right place, at the right price, at the right time. Marketing executives believe that product lines give companies a competitive advantage. Product positioning can be defined as the position or place a product resides in the consumers mind with respect to the competing product.
The product mix is a subset of the marketing mix and is an important part of the business model of a company. The price of a product is influenced by a number of factors, such as manufacturing cost, competition, market conditions, and quality of the product. Oct 19, 2015 for example, if a lawn mower product is purchased for use around the house, then this lawn mower is categorized in the consumer product. The five product levels model provides a way to show the different levels of need customers have for a product. In general, a product is defined as a thing produced by labor or effort or the result of an act or a process. In general terms, marketing mix is a variety of different factors that can influence a consumers decision to purchase a product or use a service. Oct 15, 20 for this reason philip kotler states that there are five product levels that can be identified and developed. Simply, it shows the number of items in the product line.
A product line is a group of closely related products with similar functions, customer groups, outlets and same price ranges. Aug 06, 2014 the marketing mix is a tool that is made up of four unique but interconnected and interdependent variables. Product mix overview, dimensions and practical example. Product mix or product assortment is a set of total number of products lines that a seller offers in the market to its. It acts as a crucial element of generating revenue for an organization. The mix is considered consistent if the products in all the product lines are similar. Product marketing in a business addresses five important strategic questions. For example product mix of bajaj company has more than 100 items in various product lines, such as fans, bulbs and tubes, heaters, motorbikes, shooters, richshow, processing machines, and many other ranges. Product mix, product line and product items your article library. A product line is a group of related products produced.
A product line is a group of related products under a single brand sold by the same company. The marketing mix is a business tool used in marketing products. The breadth of a product mix shows the different kinds of product lines that firm carries. Promotion is a communication tool that encapsulates the first 3 ps by putting the right product in the right place, at the right price, at the right time, with the goal of it being irresistible to customers. Product mix is defined as the set of all products and items that a particular seller offers for sale. The product mix includes both product lines and product items. Product mix and product line understanding product length. Expanding the product line is the second one of the product line decisions. This means nothing else than the number of items in a product line.
Formulating linear programming problems one of the most common linear programming applications is the product mix problem. Pricing can be defined as a process of determining the value that is received by an organization in exchange of its products or services. Many companies now a day develop product line instead of a single product. While marketing a tourism product, the sales or marketing person insists on the positive facets of the following four components. The marketing mix is often crucial when determining a product or brands unique selling point and is often synonymous with the four ps. Promotion is product exposure and public relations efforts via advertising through the channels mentioned above as well as word of mouth, direct mail, email marketing and social media. Each element is crucial in its own right and needs to be given due focus. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in. The width is all about the number of different product lines the company carries. Total number of items in the product mix of the company.