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