A product mix is the range of product lines offered by a vendor, including the number and type of products in each line. Retailers and other businesses carefully consider how product lines fit together to attract consumers and increase revenue potential. Examples include supermarkets and universities.
A product mix consists of the various product lines that are offered for sale by a particular vendor. Sometimes referred to as product assortment, it has to do with the number of product lines offered, the number and type of products offered in each line, and the relevance of those products to consumers presented with an opportunity to buy products. Retailers are often very concerned about the range of products they offer, as stocking the right mix of products helps ensure they reach their target consumer market and generate sales.
The products offered in a supermarket are good examples of what goes into a viable product mix. Many product lines have to do with food. Fresh produce is one type of product line, while canned goods are another. Frozen foods represent a third product line, while meats represent yet another product grouping. While groceries make up the main product lines in the mix, other items help make the store more appealing to customers. By including product lines such as over-the-counter medicines, cutlery and food storage items, the supermarket can provide an added incentive for customers to buy more of what they need in one location.
Companies other than retailers also use the concept of product mix. Colleges and universities are a prime example. These types of institutions offer a variety of degree programs, which are essentially product lines in the overall blend of products offered. Within those product lines, the individual courses serve as the products themselves required to obtain the diploma. By offering a wider range of degree programs, a university gets a wider mix of products and is therefore likely to attract more students.
Developing a product mix isn’t just about picking a random range of products and putting them on sale. Often, retailers and other businesses will look closely at how various product lines fit together. When products are sold alongside other products that can be used simultaneously, the overall mix is seen as unified and therefore more appealing to consumers. For example, if a retailer sells two or three brands of mops, it’s usually a good idea to also carry two or lines of products that can be used to clean floors, thereby increasing revenue potential by satisfying more than one customer.
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