6 types of Product Mix pricing to push products in the market
- 1) Product line pricing Product line pricing is used when the prices within the product line is kept variant so that the customer purchases one or the other product within the product line. ...
- 2) Optional feature pricing ...
- 3) Captive product pricing ...
- 4) Two part pricing ...
- 5) By Product pricing ...
- 6) Product bundling pricing ...
How to determine an optimal product mix?
- Expansion of Product Mix:
- Contraction of Product Mix:
- Deepening Product Mix Depth:
- Alteration or Changes in Existing Products:
- Developing New Uses of Existing Products:
- Trading Up:
- Trading Down:
What are the ways to improve a product mix?
How to Improve Product Mix
- Product Modification. Product modification refers to changing a product's characteristics. ...
- Changing Mix Width. The width of a product mix refers to the number of different product lines a company carries. ...
- Altering Mix Depth. ...
- Changing Mix Consistency. ...
- Product Mix Decisions. ...
- BCG Matrix. ...
What are the product mix strategies?
Product Mix Strategies
- the percentage of a particular product (such as televisions, stereos, etc.) of the stores’ total inventory or compared to the total units on rent.
- The number of individual products produced or sold by an organization. ...
- The particular mix of products that the firm is marketing. ...
What are the elements of the product mix?
What is Product Mix
- Width – Number of Product lines. Width or breath of the product mix means the total number of product lines that a company offers to sell.
- Depth – Product Variation. Depth of a product mix means the total number of variations for each product a company offers within.
- Length – Total Products. ...
- Product Mix Consistency. ...
What is product mix and examples?
Product Mix, another name as Product Assortment, refers to several products that a company offers to its customers. For example, a company might sell multiple lines of products, with the product lines being fairly similar, such as toothpaste, toothbrush, or mouthwash, and also other such toiletries.
What are product mixes?
A product mix is the total number of product lines and individual products or services offered by a company. Additionally referred to as product assortment or product portfolio. Product mixes vary from company to company. Some have multiple product lines with lots of products in each line.
What are the 5 product mix strategies?
Five product mix pricing situationsProduct line pricing – the products in the product line.Optional product pricing – optional or accessory products.Captive product pricing - complementary products.By-product pricing – by-products.Product bundle pricing – several products.
What are the 4 elements of the product mix?
The 4Ps are:Product (or Service).Place.Price.Promotion.
What are the 3 product mix strategies?
PRODUCT MIX STRATEGYExpansion of Product Mix. Expansion of product mix implies increasing the number of product lines. ... Contraction of Product Mix. ... Deepening Product Mix Depth. ... Alteration or Changes in Existing Products. ... Developing New Uses of Existing Products. ... Trading Up. ... Trading Down. ... Product Differentiation.
What is importance of product mix?
Importance Of Product Mix Product mix helps determine in which direction your company is heading, and the data accumulated by it helps you determine where you want to lead the company. It also helps you to be consistent with your targeted customers.
What are the 5 Ps of marketing?
The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE. Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments. Read on to find out more about each of the Ps.
What are the 4 types of marketing strategies?
The four Ps are a “marketing mix” comprised of four key elements—product, price, place, and promotion—used when marketing a product or service. Typically, businesses consider the four Ps when creating marketing plans and strategies to effectively market to their target audience.
What are the types of marketing mix?
The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.
What are different types of products?
There are four types of products and each is classified based on consumer habits, price, and product characteristics: convenience goods, shopping goods, specialty products, and unsought goods....Let's dive into each one in more detail.Convenience Goods. ... Shopping Goods. ... Specialty Goods. ... Unsought Goods.
What is 7ps in marketing mix?
It's called the seven Ps of marketing and includes product, price, promotion, place, people, process, and physical evidence.
Who introduced 4ps of marketing?
E. Jerome McCarthyThe 4 Ps, in its modern form, was first proposed in 1960 by E. Jerome McCarthy; who presented them within a managerial approach that covered analysis, consumer behavior, market research, market segmentation, and planning. Phillip Kotler, popularised this approach and helped spread the 4 Ps model.
What is product mix of Nike?
Nike Price Market Mix Nike uses value-based pricing and premium-based pricing strategy for their products. Value-based pricing means the company considers the current market price while setting the prices of products. Before setting up the prices, they measure what overall customers are willing to pay for a product.
What is product mix of Coca Cola?
For example – if a company produces only soft drinks and juices, this means its mix is two products wide. Coca-Cola deals in juices, soft drinks, and mineral water, and hence the product mix of Coca-Cola is three products wide.
What is product mix and its elements?
Product mix, also known as product assortment, refers to the total number of product lines a company offers to its customers. The four dimensions to a company's product mix include width, length, depth and consistency.
What is a product mix quizlet?
Product mix. A particular assortment of products a business offers to meet its market's need and its company's goals. Product line. A group of related product items (toothbrush, toothpaste, mouthwash etc.)
1. What is a Marketing Plan?
A marketing plan is a type of operational document which outlines the advertising strategy. The organization will implement this marketing plan to...
2. What is the Importance of a Marketing Mix?
The elements present in a marketing mix influence each other. They make up the business plan for a company that is handled right, this can give it...
3. Who are the Target Customers?
Target Customers or the Potential Customers whatever it is well known as is a broad group of customers who demand or get attracted to a specific pr...
4. What are the various types of product mixes?
The Product mix which is also known as product assortment or product portfolio refers to a complete set of products or services offered by a firm h...
5. Where can I download the Product Mix - Meaning, Definition, Example, and FAQs?
The students can avail the Product Mix - Meaning, Definition, Example, and FAQs from the website of Vedantu for free of cost. The website provides...
What is product mix?
Product mix refers to the complete set of products or services offered by a business. These products or services are usually grouped within product lines, representing the different types of products offered
What is a product mix, and what is a product item?
A product item is a specific product version that can be designated as a distinct offering among an organization’s products. Put simply, while the Coca-Cola Company has a product mix, and the Coca-Cola labeled products would be a product line, a single can of Coca-Cola is a product item.
Why are product mixes important?
Understanding the concept of a product mix can help your business in multiple ways. Keeping a well-maintained product mix will:
What is depth in product?
Depth: The options available in a particular product line, such as different quantities, sizes, etc.
What are some examples of product mixes?
Example of a Product Mix. A popular and classic example of Product Mix is of the brand Coca-Cola. For simplicity, let us assume that Coca-Cola oversees only two product lines that are soft drinks and juice (Minute Maid). The Products that are classified as soft drinks are Coca-Cola, Fanta, Sprite, Diet Coke, Coke Zero, ...
What Do You Mean By Product Mix?
Product Mix, another name as Product Assortment, refers to several products that a company offers to its customers. For example, a company might sell multiple lines of products, with the product lines being fairly similar, such as toothpaste, toothbrush, or mouthwash, and also other such toiletries. All these are under the same brand umbrella. Whereas, a company may have varied and distinct other product lines that may be in good contrast to each other, such as medicines and clothing apparel.
Why is it important to focus on a marketing mix?
Focusing on a marketing mix helps an organization to make strategic decisions while launching new products or revising their own existing products.
Why is marketing mix important?
Marketing Mix surely helps the company to be more competitive and adaptable in its market.
How does marketing mix influence each other?
Ans. The elements present in a marketing mix influence each other. They make up the business plan for a company that is handled right , this can give it great success. Also, this can be handled wrong and the business could take years to recover. The marketing mix for a business to grow needs a lot of understanding, requires market research and consultation with several other people, from users to trade to manufacturing and several others who are connected with the company.
What is marketing plan?
Ans. A marketing plan is a type of operational document which outlines the advertising strategy. The organization will implement this marketing plan to generate and reach its target market. The functions and components of a marketing plan are to include market research to support the pricing decisions and new market entries.
What are the products that are classified as soft drinks?
The Products that are classified as soft drinks are Coca-Cola, Fanta, Sprite, Diet Coke, Coke Zero, and the products that are classified as Minute Maid juice are Guava, Orange, Mango, and Mixed Fruit. The product mix or the consistency of Coca-Cola would be high, as all the products within the product line fall under this beverage.
What is the length of a product mix?
The length of the product mix means total number of products within the company product lines. For example, if a company has 10 product lines and each line has 3 products, then length is (10×3) = 30.
Why is product mix important?
The product mix is an essential element of the marketing mix because the other elements will work if there is a product or service to offer in the market. It is known as the central part of all marketing activities.
What is product mix consistency?
Product mix consistency is the close relationship between different product lines. The more product variation means less product consistency. For example, a dairy company has two product lines milk and yogurt. Both lines have the same users and distribution channels. Due to low product variation and high product mix consistency. Take another example of Philips Electronics with 7 product lines having high production mix variation and low consistency.
What does width mean in product mix?
Width – Number of Product lines . Width or breath of the product mix means the total number of product lines that a company offers to sell. For instance, if a company offers milk and yogurts, it indicates that it has two lines.
What is product in marketing?
A product is anything that is offered to a market to satisfy customer wants and needs. The product includes both tangible and intangible items available for sale in the market. A company sells a variety of products at a time. For example, PepsiCo sells hundred of products under the product lines of beverages, food, and nutritional products. These product lines, when combines, are known as product mix.
What is product line?
A product line is a group of closely related products with similar functions, customer groups, outlets, and the same price ranges. For instance, the Nike product line includes Footwear, Apparel, and Sports equipment, when all these product lines combine constitutes product mix.
What Is Product Mix?
Product mix, also known as product assortment, refers to the total number of product lines that a company offers to its customers. The product lines may range from one to many and the company may have many products under the same product line as well. All of these product lines when grouped together form the product mix of the company.
What is product mix consistency?
Product mix consistency refers to how closely products are linked to each other. Less the variation among products more is the consistency. For example, a company dealing in just dairy products has more consistency than a company dealing in all types of electronics.
What are some examples of Patanjali products?
For example, Patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc. Shampoo, here, forms a different product line, flour forms a different product line as well, and so does toothpaste. However, when they all are grouped together, they form the product mix of Patanjali.
What does width of mix mean?
The width of the mix refers to the number of product lines the company has to offer.
How many products does Coca Cola have?
Coca-Cola has product brands like Minute Maid, Sprite, Fanta, Thumbs up, etc. under its name. These constitute the width of the product mix. There are a total of 3500 products handled by the Coca-Cola brand. These constitute the length. Minute Maid juice has different variants like apple juice, mixed fruit, etc.
What is marketing essentials?
January 17, 2021 Marketing Essentials by Aashish Pahwa. A product is an item produced or procured by the business to satisfy the needs of the customer. It is the actual item which is held for sale in the market. A company usually sells different types of products.
Does Coca Cola have a wide product mix?
Many new companies start with limited width, length, depth, and high consistency of the product mix, while companies with good financial standing have wide, long, deep, and less consistency of the product mix.
What is product mix?
The product mix constitutes not only a single product line but all the products within an organization. A company like HUL or P&G or even top automobile companies like Volkswagen or General motors have multiple product lines and many strategic business units in their organization structure. Each product within the structure forms a part ...
How many types of product mix pricing are there?
In general, there are 6 types of product mix pricing used by any organisation to take care of their product mix and product lines.
How does product mix pricing affect dove?
If Dove has multiple products in its portfolio, and it starts one cheap product, it can affect the brand equity of dove and the profitability of Dove product line will drop. If the profitability of Dove drops, the revenue available for other products lines to be marketed also drops. Thus, a wrong product mix pricing decision is avoided by companies at all cost.
What is product bundling price?
Generally most product line prices deal with an individual product but a product bundling price deals with the combination of multiple products. On any given weekend, you will see the magic of Product bundling price whenever you see the promotional section of your newspaper.
What are the different versions of Hyundai I20?
Similarly in core products, products like the Hyundai I20 come in 3 variants – Asta, Magna and Sportz, each of them cheaper then the previous one based on the features they provide (Asta being the costliest). As the features increase, so thus the pricing.
What is a two part fee?
When we go to an amusement park, there is a basic entry fee and then the fees for each ride is separate and the refreshments are also separate. This is known as a two part fee. The initial fee is for the maintenance of the amusement park and the second fee is for the maintenance and the profits of the amusement rides within the park. A similar structure is observed in telecom companies where they charge you a basic amount on monthly basis and then the extra charges are based on your total usage.
Does Philips have a mixer grinder?
If Philips has a line of Mixer grinders, then it will have one in the lower range, one in the medium range and one in the higher range, so that it can satisfy each type of customer. When you want to plan product mix pricing, you have to ensure that target markets of the complete product line are covered.
What is product in business?
A product can be defined as- “A good, idea, method, information, object, or service that is the end result of a process and serves as a need or want satisfier. It is usually a bundle of tangible and intangible attributes (benefits, features, functions, uses) that a seller offers to a buyer for purchase.”.
What is the meaning of "product"?
Product – Meaning of Product. A product is something that is manufactured for sale in the market. Customer needs are met by the usage of products. Product is one of the main components of marketing—all marketing activities revolve around the product. Products can be tangible or intangible.
What is the difference between tangible and intangible products?
Tangible products are known as goods while intangible products are called services. The term product can be understood in narrow as well as broad sense. In a narrow sense, it is a set of tangible physical and chemical attributes assembled in an identifiable and readily recognizable form.
What is product in a broader sense?
The term product can be understood in narrow as well as broad sense. In a narrow sense, it is a set of tangible physical and chemical attributes assembled in an identifiable and readily recognizable form . In a broader sense, it recognizes each separate brand as a separate product.
Why do manufacturers have to offer the same features and functions but at lower prices?
Sometimes due to increasing competition in the market, the manufacturers have to offer the product with same features and functions but at lower price.
Is a tangible or intangible product exchangeable?
Irrespective of the fact that whether the product is tangible or intangible, it should be capable of being exchanged between buyer and seller for a mutually agreed price.
Is Lux soap a separate product?
Here, every brand is considered a separate product i.e., Lux and Lifebuoy—both are soaps, but are treated as separate products. In narrow sense, these will be considered as merely soaps. Every business firm undertakes the function of product selling, though it may or may not be visible.
What is product mix?
The product mix is the collection of all those products and services that a particular company offers in the market.
What is product mix pricing?
Product Mix Pricing Strategies in Marketing 1 The product mix is the collection of all those products and services that a particular company offers in the market. 2 The set of all product line or item which a particular seller offers to sale. 3 The number of all product of similar nature or kind offered by a particular seller for sale.
What are some examples of by-products of processing rice?
For example processing of rice results in two by-products i.e. rice husk and rice brain oil, and sugar cane with husk. Now if company sells husk and brain oil to other consumers, they will generate extra revenue by adopting this by-product pricing.
Why do organizations separate products from main products?
Organizations separate these products from main product because organizations want that customer should not perceive products are costly. Once the potential customer comes to the show room, organization employees explain the benefits of buying these optional or accessory products.
