Some companies can misunderstand a product mix as a group of several products that a company puts into the market. This way customers can get different kinds of facilities in one place. For example, if you are managing a chain of hotels for a company, you can offer your customers different kinds of rooms, gardens and swimming pools in one place. This can directly help them to plan and build strategies that focus on increasing the efficiency of the sales. Product mix can help the companies know their loyal customer base and the customers who are switching to their competitors. Focusing on products that are currently in demand with the customers can help companies to stand against their competitors in the market. Companies often focus on having those products in the product mix which are in demand. If the product mix contains a product that is unpopular among consumers, it can lead to a significant loss in sales.

The larger the product mix is, the more it can help the company in planning strategies for growing sales. Read more: 24 Product Manager Interview Questions (And Example Answers) Size For example, if a soap company produces a basic budget soap, an expensive soap and nature-friendly soap, then a good product mix contains all the varieties of soaps that the company produces with the types of consumers and their needs.

A good product mix can provide detailed information about each and every product and the target customers. The main function of a product mix is to provide companies with an understanding of a particular product and the methods to advertise it to as many customers as possible. Using product mix perfectly helps companies to stay with the latest trends, as there can be many competitor companies that focus on several customer bases. It helps businesses to fulfil the demands of their customers better. Focusing on product mix allows companies to analyse the needs of customers so that they can introduce some new products to the line. Here are the basics of a product mix that help companies to maintain the needs of their existing customer base and reach out to new customers: SignificanceĬompanies with large product lines often focus on product mix. Read more: How Much Do Product Managers Make? (With Career Info) What are the basics of a product mix? Professionals working in the product development department often create flowcharts to illustrate their different various product lines and to explain how the product lines relate to one another. The products which fall into the same product line generally target the same customer base and have almost similar prices. A company can have a number of product lines containing several products.Ī product line is basically a group of several products which are similar in terms of their basic attributes. Some companies have a limited number of products, while others have several lines of products, which include a number of different products in each product line. The product mix is something that keeps varying from company to company. What is a product mix?Ī product mix is the total number of individual products and the product lines that the company manufactures. In this article, we find the answer to 'What is product mix?', explore its basics, dimension, its importance and review an example of product mix. Understanding the basics and importance of product mix can be helpful to the professionals working in product development and related departments. A product mix is the total number of product lines or individual products that a company manufactures. A product is an item that a company manufactures to distribute to its customer base.

Define finance mix strategy