Product Mix vs Product Line Both manufacturers and

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 closelyrelated 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 Pentax Nikon Minolta

Product Item • A product item is a specificmodel, 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 – Toiletries • • - Writing Instruments - Lighters Gillette’s product depth includes pens such as Flair and Papermate Choose a manufacturer and complete a table that resembles Figure 30 -1