product mix vs. product line both manufacturers and retailers must decide on width and depth of a...

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.

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.

Product Mix

• Can be a manufacturer’s product mix

• For example, Kraft sells– Oscar Meyer– Maxwell House– Kraft cheese

• Can be a retailer’s product mix which is made up of different types of products the store sells

• For example,– Name the product

mix for Wal-Mart

Manufacturer’s Product Line

• Kellogg’s is an example of closely-related products manufactured by a business.

Product Line

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

Retailers and Product Line

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

VS

Retailer Wolf Camera • Wolf camera sells

more than one product line of cameras. Pictured here are four manufacturers’ SLR 35 mm cameras.

Canon Nikon

Pentax

Minolta

Product Item• A product item is a specific-

model, brand or size of a product within a particular product line.

BUT

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

• This is product ____________.

Product Width

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

Product Depth

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

Action

• Look at Figure 30-1 on p. 549• Gillette’s product width includes

– Razors - Writing Instruments– Toiletries - Lighters

• Gillette’s product depth includes pens such as Flair and Papermate

• Choose a manufacturer and complete a table that resembles Figure 30-1