Product Mix vs. Product Line

1
Product Mix vs. Product Line

• Both manufacturers and retailers must decide on
  width and depth of a product mix. This is done
  with strategies that determine a target market
  and an image.

2
Vocabulary

• A product line is a group of closely related
  products manufactured and/or sold by a business.
• A product mix is a number of different types of
  product lines.
• Product width is a mix that tries to bring out
  lots of new products aimed at existing customers.
• Product depth is a mix that tries to bring out
  new products designed to attract new customers.

3
Product Mix

• Can be a manufacturers product mix
• For example, Kraft sells
• Oscar Meyer
• Maxwell House
• Kraft cheese

• Can be a retailers product mix which is made up
  of different types of products the store sells
• For example,
• Name the product mix for Wal-Mart

4
Manufacturers Product Line

• Kelloggs is an example of closely-related
  products manufactured by a business.

5
Product Line

• Another example of a product line would be
  products made by Frito-Lay. (also pictured on
  page 548 in the textbook)

6
Retailers and Product Line

• Retailers usually sell more than one product
  line. For instance,

VS
7
Retailer Wolf Camera

• Wolf camera sells more than one product line of
  cameras. Pictured here are four manufacturers
  SLR 35 mm cameras.

Pentax
Minolta
Canon
Nikon
8
Product Item

• A product item is a specific-model, brand or size
  of a product within a particular product line.

9
BUT

• Remember, Dell also sells such things as
  printers, TVs and digital music players.
• This is product ____________.

10
Product Width

• Refers to the number of different lines a
  business or manufacturer sells

11
Product Depth

• Refers to the number of product items offered
  within each product line

12
Action

• Look at Figure 30-1 on p. 549
• Gillettes product width includes
• Razors - Writing Instruments
• Toiletries - Lighters
• Gillettes product depth includes pens such as
  Flair and Papermate
• Choose a manufacturer and complete a table that
  resembles Figure 30-1