A product may be defined as a bundle of physical and psychological satisfaction that a buyer receives from a purchase, e.g. sugar. It can be an idea, service or goods. Products can fall into two categories:
- Consumer Product: These are products purchased to satisfy personal and family needs, e.g. shoes.
- Industrial Product: This refers to products bought for use in a firm’s operations or to make other products.
Product mix is therefore concerned with developing the right product for the target market. The crux of the matter is to develop something which will satisfy the consumers’ needs. Marketing mix determines the product line, assortment, designs, differential, branding, labelling and packaging, product additions, modifications and deletions, durability, quality and style variation.
The starting point for determining the composition of the firm’s product mix is to decide which market to serve. After careful analysis of consumers needs and preferences and the competitive offering, the final choice of products to be produced for the market can be made.
A well packaged product mix will increase the sales of the product and make it acceptable to the consumers.