Products are often sold in different varieties in order to appeal to consumer taste.
Companies need to do more than create products that customers might want. They must also release and promote products in strategic ways. Instead of releasing a single product or selling a single product at a store, companies usually sell product mixes, which are several different products that are similar but appeal to different customers.
Company
Product mixes are products that are marketed together to earn a higher revenue than what would be earned if these products were marketed separately. Different yet related products are often marketed together to give customers variety, to spread company risk across a broader range of products and to more flexibly respond to a continually evolving marketplace. An example of a product mix is yogurt sold with a spoon.
Benefits
Product mixes broaden when new products are developed to respond to changing consumer tastes while also keeping older versions of products to appeal to nostalgia. Companies can encourage customers to purchase products similar to ones they’ve already purchased from the company by offering new features. Product mixes do not always expand, since some products lose their profitability and are eventually removed from the marketplace to make room for more profitable products.
Retail
Product mix also refers to all of the items that are sold by a particular company. Some product mixes are part of a complete product line released by product developers. For instance, a water filtering company might release a group of filters with different degrees of filtration and different prices. Other product mixes refer to the inventory of a particular retail store. These mixes take into consideration product types and also variants of specific types of products, such as bicycles that come in different colors.
Marketing
Product mix is sometimes considered a part of a larger context known as the marketing mix, which consists of the product, price, place and promotion. The elements of the marketing mix are the only tools businesses have to meet their goals. For example, when selling a new line of WiFi modems, companies entice consumers by improving the products, reducing prices, releasing products in a new location or offering promotional incentives.
Considerations
Product mixes must also reflect the demographics of the area where the retail store is located. Many product mixes provide variants of a single product that have different prices so that consumers seeking to save money and consumers seeking products that are more durable or have more features can have multiple options.
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