Home → Terms → Product mix (or product portfolio) A product mix (or product portfolio) consists of all the product lines and items that particular seller offers for sale. Colgate’s product mix consists of four major product lines: oral care, personal care, home care, and per nutrition. Each product line consists of several sub lines. For example, the home care line consists of dishwashing, fabric conditioning, and household cleaning products. Each line and sub line has many individual items.
Altogether, Colgate’s product mix includes hundreds of items. Definition 2. A product mix (also called a product assortment) is the set of all products and items a particular seller offers for sale. A product mix consists of various product lines and a company’s product mix has certain width (the width of a product mix refers to how many different product lines the company carries.), length (the length of
a product mix refers to the total number of items in the mix.), depth (the depth of a product mix refers to how many variants are offered to each product in the line.), and consistency (the consistency of the product mix describes how closely related the various product lines are end use, production requirements, distribution channels, or some other way.). Setting Product Strategy - MCQs with answers - Part 6Product and Brand relationships, Product systems and mixes 1. In the product hierarchy, the basic need that underlies the survival of a product family is ____ a) Need family View Answer / Hide Answer 2. In a product hierarchy, all the product classes that can meet a core need with justified effectiveness is a) Need family View Answer / Hide Answer ANSWER: d) Product family 3. In a product hierarchy, a group of products in a product family that have certain functional coherence is a) Product class View Answer / Hide Answer 4. In a product hierarchy, a group of products in a product class that is closely associated as they perform a specific function and sold to same customer groups: a) Need family View Answer / Hide Answer 5. In a product hierarchy, a group of items within a product line that share one of several possible forms of the product are a) Need family View Answer / Hide Answer 6. A distinct unit within a product line or brand differentiated by the appearance, price, size or some other attribute. a) Item View Answer / Hide Answer 7. __________is a group of diverse but associated items that work n a compatible manner. a) Product
system View Answer / Hide Answer ANSWER: a) Product system 8. _________is the set of all items and products a particular seller offer for sale. a) Product system View Answer / Hide Answer 9. A product mix consists of various a) Product lines View Answer / Hide Answer 10. The ___________ of a product mix implies to how many different product lines the company carriers. a) Length View Answer / Hide Answer 11. The _______of a product mix implies to the total number of items in the product mix. a) Length View Answer / Hide Answer 12. The ________ of a product mix implies to how many types of variants are offered of each product in the line. a) Length View Answer / Hide Answer 13. The ___________ of the product mix implies to how closely associate the several product lines are in distribution channels, production requirements or some other way. a) Length View Answer / Hide Answer The complete set of products and/or services offered by a firm What is Product Mix?Product mix, also known as product assortment or product portfolio, refers to the complete set of products and/or services offered by a firm. A product mix consists of product lines, which are associated items that consumers tend to use together or think of as similar products or services.  Dimensions of a Product Mix#1 WidthWidth, also known as breadth, refers to the number of product lines offered by a company. For example, Kellogg’s product lines consist of: (1) Ready-to-eat cereal, (2) Pastries and breakfast snacks, (3) Crackers and cookies, and (4) Frozen/Organic/Natural goods. #2 LengthLength refers to the total number of products in a firm’s product mix. For example, consider a car company with two car product lines (3-series and 5-series). Within each product line series are three types of cars. In this example, the product length of the company would be six. #3 DepthDepth refers to the number of variations within a product line. For example, continuing with the car company example above, a 3-series product line may offer several variations such as coupe, sedan, truck, and convertible. In such a case, the depth of the 3-series product line would be four. #4 ConsistencyConsistency refers to how closely related product lines are to each other. It is in reference to their use, production, and distribution channels. The consistency of a product mix is advantageous for firms attempting to position themselves as a niche producer or distributor. In addition, consistency aids with ensuring a firm’s brand image is synonymous with the product or service itself. Illustration of a Product MixIn the illustration above, the product mix shows a:
The mix is considered consistent if the products in all the product lines are similar. Example of a Product MixLet us take a look at a simple product mix example of Coca-Cola. For simplicity, assume that Coca-Cola oversees two product lines – soft drinks and juice (Minute Maid). Products classified as soft drinks are Coca-Cola, Fanta, Sprite, Diet Coke, Coke Zero, and products classified as Minute Maid juice are Guava, Orange, Mango, and Mixed Fruit. The product (mix) consistency of Coca-Cola would be high, as all products within the product line fall under beverage. In addition, production and distribution channels remain similar for each product. The product mix of Coca-Cola in the simplified example would be illustrated as follows: Importance of a Product MixThe product mix of a firm is crucial to understand as it exerts a profound impact on a firm’s brand image. Maintaining high product width and depth diversifies a firm’s product risk and reduces dependence on one product or product line. With that being said, unnecessary or non-value-adding product width diversification can hurt a brand’s image. For example, if Apple were to expand its product line to include refrigerators, it would likely have a negative impact on its brand image with consumers. In regard to a firm expanding its product mix:
SummarySuccessfully expanding a product mix can help a business adjust to changing consumer demand/preferences while reducing product risk and reliance on a single product or product line. This, in turn, generates substantial profits for the firm. On the other hand, poor product mix expansion can result in a detrimental impact on a company’s brand image and profitability. Related ReadingsThank you for reading CFI’s guide to Product Mix. To keep learning and developing your knowledge of financial analysis, we highly recommend the additional CFI resources below:
What is the set of all products and items that a particular seller offers for sale?Answer and Explanation: The product mix is a compilation of all the products that are offered or sold by a company or seller. It comprises all the total varieties of the products and various product lines of the company.
Which term describes the number of items a company sells in one particular product line?Products under a product line can be related by functionality, target market, price range, or brand. Product line depth refers to the number of products offered under a product line.
Is a consumer product that the customer in the process of selecting and purchasing usually compares on such attributes as suitability quality price and style?Answer and Explanation: A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style, is called a shopping product. Shopping products are bought less frequently compared to convenience goods.
What is a consumer product that the consumer either does not know about or knows about but does not normally consider buying?Unsought products are those consumer products that a consumer either does not know about or knows about but does not consider buying under normal conditions. Thus, these types of consumer products consumers do not think about normally, at least not until they need them.
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__________ is the set of all products and items that a particular seller offers for sale.
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