The document discusses factors that influence a company's product mix, including changes in market demand, cost considerations, competitors' actions, production influences, and marketing efforts. It also outlines objectives and benefits of product mix such as sales growth and stability as well as profits. Finally, it lists some product mix strategies companies can employ like expanding or contracting their product lines, altering existing products, and trading up or down to different price points.

1. Factors influencing product mix
Sam Joel Dias , Mcom
Shc madanthyar

2. Factors influencing product mix
 Changes in market demand
May be bcz of increase in population
Changes in consumer behaviour
Increase in income level
 Cost consideration( cost of production)
 Advertising and distribution factors
 Image of the producer- high quality and high price
 Objective of maximization of profit

3.  Competitors -action and reaction
 Financial resources of the firm
 Production influences
 Addition of new products (when rival drops)
 Better utilization of by products or waste products
Ex; sugar factory; - card boards., paper
 Marketing efforts
 Demand factor – complementary demand
 Objectives of the firm- profit maximization

4. Objectives & benefits of product mix
 Sales growth
 Market penetration- increasing the share of current market
with existing products and with existing uses
 Market development- expansion of the market creating
new uses of existing products.
 Product development- development of new product to
satisfy the existing customers needs& increase in the share
of product.
 Product diversification- development of new products to
satisfy new consumer needs and consequent expansion of
market.
 sales stability
 Profits

5. Product mix strategies
1. Expansion of product mix- either by increasing product
lines or increasing number of product items in the line
2. Contraction of product mix – removal of product line, or
product item from the product mix
3. Alteration of existing products
4. Positioning of product
bicojoy., godrej etc
5. Trading up and down

6.  Trading up
addition of high priced products to the low priced
products.
 Trading down
opposite of trading up
6. Product differentiation and market segmentation
non price competition in markets which are
imperfect or monopolistic