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Product Mix

Dickson, Peter R. (1994). Marketing Management. New York: company carries. For example, Table 1 illustrates the
Harcourt Brace. hypothetical product mix of a major state university.
Kinnear, Thomas C., and Bernhardt, Kenneth L. (1983). Princi- The product lines are defined in terms of academic
ples of Marketing. Glenview, IL: Scott, Foresman.
departments. The depth of each line is shown by the num-
Kotler, Philip, and Armstrong, Gary (2005). Principles of Mar-
keting. Upper Saddle River, NJ: Pearson Prentice-Hall. ber of different product items—course offerings—offered
within each product line. (The examples represent only a
Myers, James H. (1986). Marketing. New York: McGraw-Hill.
partial listing of what a real university would offer.) The
Schewe, Charles D., and Smith, Reuben M. (1983). Marketing:
Concepts and Applications. New York: McGraw-Hill. state university has made the strategic decision to offer a
diverse market mix. Because the university has numerous
academic departments, it can appeal to a large cross-
Michael J. Milbier
section of potential students. This university has decided
to offer a wide product line (academic departments), but
the depth of each department (course offerings) is only
PRODUCT MIX average.
In order to see the difference in product mix, product
The product mix of a company, which is generally defined
as the total composite of products offered by a particular line, and products, consider a smaller college that focuses
organization, consists of both product lines and individual on the sciences represented in Table 2. This college has
products. A product line is a group of products within the decided to concentrate its resources in a few departments
product mix that are closely related, either because they (again, this is only a partial listing); that is, it has chosen a
function in a similar manner, are sold to the same cus- concentrated market strategy (focus on limited markets).
tomer groups, are marketed through the same types of This college offers narrow product line (academic depart-
outlets, or fall within given price ranges. A product is a ments) with a large product depth (extensive course offer-
distinct unit within the product line that is distinguish- ings within each department). This product mix would
able by size, price, appearance, or some other attribute. most likely appeal to a much narrower group of potential
For example, all the courses a university offers constitute students—those students who are interested in pursuing
its product mix; courses in the marketing department intensive studies in math and science.
constitute a product line; and the basic marketing course
is a product item. Product decisions at these three levels
are generally of two types: those that involve width (vari- PRODUCT-MIX MANAGEMENT AND
ety) and depth (assortment) of the product line and those RESPONSIBILITIES
that involve changes in the product mix occur over time. It is extremely important for any organization to have a
The depth (assortment) of the product mix refers to well-managed product mix. Most organizations break
the number of product items offered within each line; the down managing the product mix, product line, and actual
width (variety) refers to the number of product lines a product into three different levels.

Hypothetical state university product mix

WIDE WIDTH, AVERAGE DEPTH
Political Science Education Mathematics Nursing Engineering English
Political Elementary Calculus I Biology Physics English Literature
Theory Teaching
American Secondary Calculus II Chemistry Advanced Math European Writers
Government Teaching
International Teaching Trigonometry Organic Electrical Hemingway
Relations Internship Chemistry Concepts Seminar
State Post Secondary Math Theory Statistics Logic Design Creative Writing
Government Teaching

Table 1

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 609