In marketing, the terms "consumer" and "customer" are often used interchangeably, but they represent distinct roles in the purchase process:

• The person who actually makes the purchase or pays for the product/service
• Has a direct transactional relationship with the business
• May or may not be the end user of the product/service
• Primary focus is on the buying decision and experience
• Example: A parent buying toys for their child is the customer

• The person who actually uses or consumes the product/service
• May not be directly involved in the purchase decision
• Focus is on the usage experience and satisfaction
• Example: The child playing with the toys is the consumer

Consumer behavior is the study of how individual customers, groups or organization select, buy, use and dispose ideas, goods and services to satisfy their needs and wants.

Marketers expect that by understanding what causes consumers to buy particular goods and services, they will be able to determine which products are needed in the marketplace, which are obsolete, and how best to present the goods to the consumers.

1. 1. Understanding Purchase Decisions
   • Helps identify what motivates consumers to buy
   • Reveals the decision-making process from awareness to purchase
   • Uncovers influential factors like social, cultural, and psychological elements
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1. 2. Market Segmentation
   • Enables identification of distinct consumer groups
   • Allows for tailored marketing strategies for different segments
   • Helps allocate marketing resources efficiently
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2. 3. Product Development
   • Provides insights for creating products that meet actual consumer needs
   • Reduces the risk of product failure
   • Guides innovation based on consumer preferences
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3. 4. Forecasting Market Trends
   • Helps predict changing consumer preferences
   • Identifies emerging market opportunities
   • Allows businesses to stay ahead of competitors
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4. 5. Effective Communication
   • Helps craft messages that resonate with target audiences
   • Improves media selection and timing
   • Enables more persuasive and relevant advertising
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5. 6. Price Optimization
   • Reveals consumers' price sensitivity and willingness to pay
   • Guides pricing strategies for different segments
   • Helps maximize revenue while maintaining customer satisfaction
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6. 7. Distribution Channel Selection
   • Identifies where and how consumers prefer to shop
   • Guides retail location decisions
   • Informs online vs. offline strategy development
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7. 8. Risk Reduction
   • Minimizes financial risks of new product launches
   • Reduces the likelihood of marketing campaign failures
   • Provides early warning signs of changing consumer preferences
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8. 9. Consumer Experience Enhancement
   • Identifies pain points in the consumer journey
   • Guides improvements in customer service
   • Helps create memorable brand experiences
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9. 10. Brand Strategy Development
   • Informs brand positioning and differentiation
   • Helps build meaningful brand associations
   • Guides brand extension opportunities
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10. 11. Competitive Analysis
    • Provides insights into competitor strengths and weaknesses
    • Reveals unmet consumer needs in the marketplace
    • Identifies opportunities for market disruption
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11. 12. Social Media Strategy
    • Guides content creation that engages target audiences
    • Informs platform selection and timing
    • Helps manage online brand reputation
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1. 1. Modern philosophy
2. 2. Consumer behavior helps in achieving marketing goals.
3. 3. Improves performance of the entire distribution network (Dealers & Salesmen).
4. 4. More relevant marketing program.
5. 5. Adjusting marketing program over time.
6. 6. Predicting market trend.
7. 7. Consumer differentiation
8. 8. Retention of consumers
9. 9. More competitive advantages
10. 10. Developing new products
11. 11. Dynamic nature of market

1. Modern Philosophy

• Consumer behavior embodies the modern marketing philosophy of being consumer-centric rather than product-centric
• Represents a shift from "make and sell" to "sense and respond" business approach
• Aligns with contemporary business thinking that prioritizes understanding consumers before developing products
• Creates a foundation for relationship marketing rather than transaction-based approaches
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2. Consumer Behavior Helps in Achieving Marketing Goals

• Provides insights that directly contribute to meeting sales targets
• Enables more effective targeting of prospective customers
• Helps optimize marketing budget allocation for maximum ROI
• Supports the development of realistic and achievable marketing objectives
• Facilitates the creation of metrics that accurately measure marketing success
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3. Improves Performance of the Entire Distribution Network (Dealers & Salesmen)

• Equips salespeople with better understanding of customer motivations and needs
• Helps dealers stock products that align with local consumer preferences
• Enables more effective sales training based on actual consumer decision processes
• Improves communication throughout the supply chain by centering on consumer insights
• Helps distributors anticipate demand fluctuations based on consumer behavior patterns
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4. More Relevant Marketing Program

• Enables the creation of messaging that resonates with target audiences
• Helps develop promotions that address actual consumer pain points
• Guides the selection of appropriate marketing channels based on consumer habits
• Ensures product features align with genuine consumer needs
• Facilitates the development of more compelling value propositions
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5. Adjusting Marketing Program Over Time

• Provides framework for monitoring changing consumer preferences
• Enables timely adaptation to evolving market conditions
• Helps identify when product refreshes or rebranding are needed
• Supports continuous improvement of marketing strategies
• Facilitates responsive rather than reactive marketing approaches
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6. Predicting Market Trend

• Helps identify early signals of changing consumer preferences
• Enables forecasting of future demand patterns
• Supports identification of emerging market opportunities
• Provides insights into potential market disruptions
• Helps anticipate shifts in consumer values and priorities
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7. Consumer Differentiation

• Enables effective market segmentation based on behavior patterns
• Helps identify high-value customer segments
• Supports the development of personalized marketing approaches
• Facilitates understanding of different purchase motivations across segments
• Enables more efficient resource allocation by focusing on distinct consumer groups
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8. Retention of Consumers

• Provides insights into factors that drive customer loyalty
• Helps identify and address causes of customer churn
• Enables development of effective loyalty programs
• Supports creation of meaningful post-purchase experiences
• Facilitates stronger emotional connections between brands and consumers
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9. More Competitive Advantages

• Reveals unmet consumer needs that competitors may have missed
• Provides insights for meaningful differentiation in crowded markets
• Enables faster adaptation to market changes than competitors
• Supports development of superior customer experiences
• Helps create barriers to consumer switching through deeper understanding
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10. Developing New Products

• Identifies genuine consumer needs that can drive innovation
• Reduces risk of product failure through consumer testing
• Helps prioritize features based on consumer preferences
• Guides pricing strategies for new offerings
• Supports effective positioning of new products in the marketplace
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11. Dynamic Nature of Market

• Provides framework for understanding rapidly changing consumer preferences
• Helps navigate shifting competitive landscapes
• Enables adaptation to technological disruptions affecting consumer behavior
• Supports responsiveness to economic factors influencing purchasing patterns
• Facilitates adjustment to evolving social and cultural trends affecting consumption
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1. 1. Psychological factors

2. 2. Social factors

3. 3. Cultural factors

4. 4. Personal factors

5. 5. Economic factors

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The human psychology plays a crucial role in designing the consumer's preferences and likes or dislikes for a particular product or services.

These factors are difficult to measure but are powerful enough to influence a buying decision.

Some of the important psychological factors are :

i. Motivation

ii. Perception

iii. Learning

iv. Attitudes and beliefs

The human beings live in a complex social environment wherein they are surrounded by several people who have different buying behaviors.

We try to imitate other humans and also wish to be socially accepted in the society.

Some of the social factors are :

i. Family

ii. Reference groups

iii. Roles and status

i. Family :

A person develops preferences from his childhood by watching family buy products and continues to buy the same products.

ii. Reference groups :

Groups of people with whom we associate ourselves.

These include clubs, schools, professional or playgroups or even a group of friends.

iii. Roles and status :

Role that a person holds in the society.

If a person is in a high position, his buying behavior will be influenced by his status.

A group of people are associated with a set of values and ideologies that belongs to a particular community.

When a person comes from a particular community, his/her behavior is highly influenced by the culture relating to that particular community.

Some of the Cultural factors are:

i. Culture

ii. Subculture

iii. Social class

i. Culture :

Includes basic values, needs, wants, preferences, perceptions and behaviors that are observed and learned by a consumer from their near family members and other important people around them.

ii. Subculture :

Within a cultural group, there exists many subcultures.

These subcultural groups share the same set of beliefs and values.

Subcultures can consist of people from different religion, caste, geographies and nationalities.

iii. Social class :

Each and every society across the globe has form of social class.

Not just determined by income, but also other factors such as occupation, family background, education and residence location.

Factors that are personal to the consumers influence their buying behavior.

These personal factors differ from person to person, thereby producing different perceptions and consumer behavior.

Some of the Personal factors are:

i. Age

ii. Income

iii. Occupation

iv. Lifestyle

i. Age :

The buying choices of youth differ from that of middle aged people. Whereas, elderly people have a totally different buying behavior.

ii. Income:

Higher income gives higher purchasing power to the consumers. Whereas low income or middle income groups consumers spend most of their income on basic needs such as groceries and clothes.

iii. Occupation :

A person tends to buy things that are appropriate to his/her profession.

For example, a businessman would have a different clothes purchasing pattern in comparison to an artist.

iv. Lifestyle :

Our way of life is one of the most powerful influencers that controls our choices.

Suppose a person is on a diet, the products he purchase will also complement on diet, from food, weighing scale to using protein.

Consumers buying habits and decisions greatly depend on the economic situation of a country or a market.

When a nation is prosperous, the economy is strong, which leads to the greater money supply in the market and higher purchasing power for consumers.

Whereas, a weak economy reflects a struggling market that is impacted by unemployment and lower purchasing power.

Some of the Economic factors are :

i. Personal income (Disposable & Discretionary)

ii. Family income

iii. Consumer credit

iv. Liquid assets (stocks, Mutual funds).

v. Savings

vi. Income expectations

Buying motives in consumer behaviour refers to the reasons or factors driving people to purchase. These motives can be emotional, such as wanting to feel happy or secure, or rational, like needing a product for practical reasons. Emotional motives often involve feelings, desires, or status, while rational motives focus on quality, price, and necessity.

Understanding buying motives helps product and marketing teams create products and marketing strategies that connect with customers' needs and desires, ultimately influencing their buying decisions. Addressing these motives can help you better meet customer expectations and increase sales.

Buying motives are the underlying reasons, needs, wants, and impulses that drive consumers to purchase products or services. They represent the "why" behind consumer purchases

Buying motives in consumer behaviour can be based on emotions, practical needs, or social factors. By identifying what drives consumers, businesses can craft effective strategies to meet their customers’ needs. Here are some importance of these motives:

• Personalised Marketing: Businesses can create targeted ads that resonate with specific customer desires and needs.
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• Better Product Development: Knowing motives helps companies design products that solve real customer problems or fulfil desires.
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• Effective Pricing Strategies: Understanding what drives buying decisions allows businesses to set prices that align with customer expectations.
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• Improved Customer Satisfaction: When businesses address the true motives behind purchases, customers feel more satisfied and valued.
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• Stronger Customer Relationships: Focusing on consumer motives builds trust, encouraging long-term loyalty and repeat purchases.
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• Higher Conversion Rates: By catering to what motivates customers, businesses can improve their sales and conversion rates.
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• Competitive Advantage: Companies that understand consumer behaviour can stay ahead of competitors by offering solutions that directly appeal to their audience's needs.
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• Enhanced Brand Perception: Addressing emotional motives, such as status or identity, helps create a stronger connection between customers and the brand.

Rational motives are based on logic, practicality, and necessity. Consumers driven by rational motives think carefully about their purchases, considering factors like quality, price, durability, and usefulness.

Characteristics:

• Logical Thinking: The decision-making process is based on facts and clear benefits.
• Comparison: Consumers often compare prices, features, and reviews before making a decision.
• Need-Based: These motives focus on fulfilling a specific need rather than a desire.
• Cost-Effective: Consumers choose products that offer the best value for money.
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Example:

A person buying a washing machine will likely compare brands, energy efficiency, price, and durability before making a purchase. They are more interested in getting the best functionality at the right price rather than emotional factors.

Emotional motives are based on feelings, desires, and emotional connections. Consumers buy products not because they need them, but because of the emotions the products evoke.

Characteristics:

• Feelings-Based: Purchases are driven by emotions like happiness, love, or excitement.
• Desire for Experience: Consumers often buy products to enhance their lifestyle or feel a certain way.
• Impulsive Buying: Emotional motives can lead to spontaneous purchases without much thought.
• Brand Connection: Consumers may choose products because of a strong emotional connection to a brand.
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Example:

Someone buying a luxury handbag may not need it, but they might feel that owning it will make them feel more confident or stylish. The emotional appeal of owning something exclusive drives the purchase.

Economic motives are based on the desire to save money, get discounts, or receive the best deal. Consumers motivated by economics focus on getting the most for their money, whether through sales, promotions, or overall affordability.

Characteristics:

• Price Sensitivity: Consumers look for the lowest prices or the best deals.
• Value for Money: The decision is based on maximising value for the amount spent.
• Discount Hunting: Shoppers often wait for sales or special offers before making a purchase.
• Budget-Conscious: These consumers are highly aware of their spending limits.
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Example:

A consumer may wait for Black Friday sales to buy a TV at a discounted price. They prioritise getting the product at a lower price rather than paying full price, even if they want the TV sooner.

Social motives are driven by the desire to fit in, be accepted, or impress others. Consumers make purchasing decisions based on how the product or service will affect their social status or relationships.

Characteristics:

• Peer Influence: Consumers buy products because their friends or peers have them.
• Status Symbol: High-end or branded products are often chosen to reflect a certain social standing.
• Conformity: The desire to fit into a group or follow trends plays a key role.
• Social Acceptance: These motives stem from wanting to be perceived in a certain way by others.
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Example:

A teenager might buy the latest smartphone because all their friends have it, not necessarily because they need the advanced features. The primary reason is to fit in with their social circle and avoid feeling left out.

Psychological motives are based on internal feelings, thoughts, and perceptions. These motives often stem from personal growth, self-image, or mental satisfaction. Consumers make purchases that reflect their self-esteem or mental state.

Characteristics:

• Self-Image: Purchases are made to align with how a person sees themselves or how they want to be seen.
• Mental Satisfaction: Consumers seek fulfilment, happiness, or personal satisfaction from a product.
• Identity: Purchases reflect a consumer’s personality or values.
• Security and Comfort: Some products are bought to bring a sense of safety or comfort.
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Example:

A person buying a fitness tracker may do so to feel more in control of their health and improve their self-image. They are motivated by the psychological satisfaction of living a healthier lifestyle, even if they could manage their health without the device.

• Market research and consumer surveys
• Focus groups and interviews
• Analysis of purchasing patterns
• Social media monitoring
• Customer feedback and reviews
• Psychological profiling
• A/B testing of marketing messages

1. 1. Profit/Gain: Desire to save money or increase resources
2. 2. Fear: Protection from threats or negative outcomes
3. 3. Comfort/Convenience: Easier, more comfortable life
4. 4. Pride/Prestige: Enhanced social status or self-image
5. 5. Novelty/Curiosity: Desire for new experiences
6. 6. Love/Belonging: Connection with others

The consumer decision-making process is like a series of steps that people go through when they decide to buy something, the consumer decision-making process is like a journey we take from realizing we need something to actually buying it. We go through different steps to gather information, compare options, make a decision, and then evaluate our satisfaction afterwards.

1.Need Recognition: This is when you realize you need or want something. Maybe you need a new bike because your old one is broken, or maybe you want a bike to ride to work instead of driving.

Example: You notice that your old bike is rusty and doesn't work well anymore, so you realize you need a new one.

2:Information Search: After recognizing the need, you start looking for information about different bikes. You might ask friends for recommendations, read reviews online, or visit bike stores to see what's available.

Example: You ask your friends if they know of any good bike brands or models, and you search online for reviews of bikes that fit your budget.

3:Evaluation of Alternatives: Once you have some information, you compare different bikes to see which one is the best fit for you. You consider things like price, features, brand reputation, and style.

Example: You compare the features and prices of several bikes at different stores, considering factors like durability, comfort, and design.

4:Purchase Decision: After evaluating your options, you make a decision about which bike to buy. This could be based on factors like price, quality, availability, or personal preference.

Example: You decide to buy a bike from a reputable brand that offers good value for the price and has positive reviews.

5:Post-Purchase Behavior: Once you've bought the bike, you evaluate your satisfaction with the purchase. If you're happy with it, you might ride it often and recommend it to others. If you're not satisfied, you might return it, complain to the seller, or share your negative experience.

Example: After buying the bike and riding it for a few weeks, you find that it's comfortable and easy to use, so you're satisfied with your purchase. You share your positive experience with friends who are looking for bikes.

A consumer's buying decision depends on the type of products that they need to buy. The behavior of a consumer while buying a coffee is a lot different while buying a car.

Based on observations, it is clear that purchases that are more complex and expensive involve higher deliberation and many more participants. Consumer buying behavior is determined by the level of involvement that a consumer shows towards a purchase decision. The amount of risk involved in a purchase also determines the buying behavior. Higher priced goods tend to high higher risk, thereby seeking higher involvement in buying decisions.

1. Complex buying behavior

Complex buying behavior is encountered particularly when consumers are buying an expensive product. In this infrequent transaction, consumers are highly involved in the purchase decision. Consumers will research thoroughly before committing to investing. Consumer behaves very different when buying an expensive product or a product that is unfamiliar to him. When the risk of buying a product is very high, a consumer consults friends, family and experts before making the decision.

For example, when a consumer is buying a car for the first time, it's a big decision as it involves high economic risk. There is a lot of thought on how it looks, how his friends and family will react, how will his social status change after buying the car, and so on

2. Dissonance-reducing buying behavior

In dissonance-reducing buying behavior consumer involvement is very high. This might be due to high price and infrequent purchase. In addition, there is a low availability of choices with less significance differences among brands. In this type, a consumer buys a product that is easily available.

Consumers will be forced to buy goods that do not have too many choices and therefore consumers will be left with limited decision making. Based on the products available, time limitation or the budget limitation, consumers buy certain products without a lot of research.

For example, a consumer who is looking for a new collapsible table that can be taken for a camping, quickly decides on the product based on few brands available. The main criteria here will be the use and the feature of the collapsible table and the budget available with him.

3. Habitual buying behavior

Habitual Buying Behavior is depicted when a consumer has low involvement in a purchase decision. In this case the consumer is perceiving only a few significant differences between brands. When consumers are buying products that they use for their daily routine, they do not put a lot of thought. They either buy their favorite brand or the one that they use regularly - or the one available in the store or the one that costs the least.

For example, while a consumer buys a loaf of bread, he tends to buy the brand that he is familiar with without actually putting a lot of research and time. Many products fit into this category. Everyday use products, such as salt, sugar, biscuits, toilet paper, and black pepper all fit into this product category.

4. Variety seeking buying behavior

In variety seeking consumer behavior, consumer involvement is low. There are significant differences between brands. Here consumers often do a lot of brand switching. The cost of switching products is low, and hence consumers might want to try out new products just out of curiosity or boredom. Consumers here, generally buy different products not because of dissatisfaction but mainly with an urge to seek variety.

For example, a consumer likes to buy a cookie and choose a brand without putting much thought to it. Next time, the same consumer might may choose a different brand out of a wish for a different taste. Brand switching occurs often and without intention.

In marketing, a product is an object or system made available for consumer buse; it is anything that can be offered to a market to satisfy the desire or need of a customer.

A product is anything that is offered to the market to satisfy a customer’s need or want. It can be a physical good, a service, or even an idea.

i. Tangibility:

Products are tangible in nature, customers can touch, seen or feel a products. For example, car, book, computer etc.

ii. Intangible Attributes:

Service products are intangible in nature, services like, consultancy, banking, insurance etc. The product may be combination of both tangible and intangible attributes like restaurants, transportation, in case of a computer it is a tangible product, but when we will talk of its free service provided by dealer, then the product is not only a tangible item but also an intangible one.

iii. Associated Attributes:

The attributes associated with product may be, brand, packaging, warranty, guarantee, after sales services etc.

iv. Exchange Value:

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.

v. Customer Satisfaction:

A product satisfies the customer needs and wants of customers, value of products is also determined by the level of satisfaction given by a product after purchase.

vi. Functionality & Utility – Designed to fulfill a specific need or solve a problem for customers.

vii. Quality & Durability – Determines the reliability and longevity of the product. High-quality products build customer trust.

viii. Design & Aesthetics – Includes the shape, color, packaging, and overall appearance that attracts buyers.

ix. Branding & Identity – A product can be branded to differentiate it from competitors and create loyalty.

x. Value Proposition – The unique benefits and advantages it offers to consumers over alternatives.

xi. Price & Affordability – Products are priced based on costs, demand, and perceived value.

xii. Customization & Variability – Many products come in different variants (e.g., sizes, colors, features) to suit different customer needs.

xiii. Shelf Life & Durability – Some products have a long lifespan (e.g., electronics), while others are perishable (e.g., food items).

xiv. Packaging & Labeling – Protects the product, provides information, and enhances its appeal.

xv. Availability & Distribution – How easily a product can be found and purchased, whether in physical stores or online.

1.Product is the Centre of all Marketing Activities:-

Product is the pivot and all the marketing activities cluster around it. Marketing activities such as advertising, sales promotion distribution, buying, selling etc. are all made possible only on account of the product.

2.Starting Point of Marketing Planning:-

To the marketer, products are the building blocks of a marketing plan. Marketing planning is done on the basis of the nature, quality and the demand of the product. Product policies decide other ppolicies.

3.Centre of Consumption and Satisfaction:

From the consumers' point of view, the product is the centre of their consumption and satisfaction. It is the philosophy of the modern marketing concept.

4.Importance from social Viewpoint.

From a social viewpoint also, the product satisfies the needs of society. On the one hand, product satisfies the need of consumers and on the other, it provides employment and standard of living to millions of people.

5.Corporate Need Satisfaction:-

The basic corporate need for profits is satisfied by-products. It is the product through which a company exploits market opportunities and generates sales volume and revenue.

6.A Competitive Weapon:-

Product is the competitive weapon of very great potential. Whenever competitive pressures develop in the market, consumer preference changes or otherwise there emerges a need for change in the components of the product.

PRODUCT CLASSIFICATION:-

1. 1. Consumer Based Products
2. 2. Industrial Based Products
3. 3. Durability Based Products

a. Convenience Goods:-

These are goods that the consumer usually purchases frequently, immediately and the minimum effort in buying.

Ex:- Soaps, Salt, Newspaper

b. Shopping Goods:-

These are goods that the consumer usually purchases after going around shops and comparing the different alternatives offered by different producers.

Ex:- Clothing, Furniture

c. Speciality Goods:-

The special goods for which the customers need specific effort and long time to buy is called 'specialty goods'.

Ex:- Specific Brands of goods, cars, jewellery etc.

a. Materials and Parts:-

Products that are used in Manufacturing finished goods.

Ex:- Raw Materials etc.

b. Capital Goods:--

Long term products that facilitates manufacturing of finished goods.

Ex:- Factory, building, Machinery etc.

c. Supplies and Business Supplies:-

Short term products that facilitates manufacturing of finished goods.

Ex:- Paint, Coal, Paper etc.

a. Durable Goods:

These goods can be used for long periods

Ex:- Refrigerator, Computers etc.

b. Non - Durable Goods:-

These are usually used for relatively shorte periods.

Ex:- Fruits, Vegetable etc.

Product Planning and Development refers to the systematic process involved in creating a new product from the conception of an idea through to its commercialization. It involves identifying customer needs, developing a product to meet those needs, and preparing the product for the market. This process is essential for businesses to innovate, stay competitive, and meet evolving market demands.

1. 1. Idea Generation

2. 2. Idea Screening

3. 3. Concept Development and Testing

4. 4. Development of Marketing Strategy

5. 5. Business Analysis

6. 6. Product Development

7. 7. Test Marketing

8. 8. Commercialization

9. 9. Idea Generation

In this stage, company comes up with many different and unique ideas based on both internal and external sources.

1. 1. Idea Screening:-

The objective of this stage is to focus on ideas that are in line with Company's customer value and financial goals.

1. 2. Concept Development and Testing:-

The good product ideas are developed into detailed product concepts. This Concept than tested by presenting it to the target customers and their response must be taken into account.

1. 3. Development of Marketing Strategy:-

The Company therefore come up with the price, potential revenue figures as well as advertising and distribution channel in this step.

1. 4. Business Analysis:-

Test in order to ascertain projected sales and revenue and also assess risk and wheather the production of the product is financial feasible. The Companys objectives are considered and if these are satisfied.

1. 5. Product Development:-

The Management of a Company declares a product concept to be in line with the goals of the company and issues green light for Development. Then the production starts on micro level.

1. 6. Test Marketing:-

This stage involves the testing of the product by providing goods in micro level. This stage provides how the product will be introduced, advertised, produced, packaged, distributed and any optimization if required can be made by the company.

1. 7. Commercialization:-

After gathering information the management may either decide to go ahead with the launch of product or put the backburner. In the case of go ahead is given, the product is finally introduced in the market.

Product Mix is the set of all product offered for sale by a company.

The product mix is a subset of the marketing mix and is an important part of the business model of a company. The product mix has the following:-

a.Width:

The width of the mix refers to the number of product lines the company has to offer

Product line is a group of related products (constitute a product line) E.g - Bata had a range of 1138 product lines(2009)

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.

b.Length:

The length of the product mix refers to the total number of products in the mix. That is if a company has 5 product lines and 10 products each under those product lines, the length of the mix will be 50 [5 x 10].

c.Depth:

The depth of the product mix refers to the total number of products within a product line. There can be variations in the products of the same product line. For example - Colgate has different variants under the same product line like Colgate advanced, Colgate active salt, etc.

d.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.

The P.L.C is the course of the life of a product from when the product is in development to after it has been removed from the market.

1. Introduction Stage

2. Growth Stage

3. Maturity Stage

4. Decline Stage

1. Introduction Stage:-

• Product is launched

• With full scale production and Marketing

• Sales grow at lower rate because demand

• High Promotional expenses.

2. Growth Stage:-

• Market accepted the product

• Sales rise

• Product achieve widespread approval in market

• Sales and profits increases at an accelerated rate.

3. Maturity Stage:-

• Market becomes saturated because household demand is satisfied and distribution channel full
• Full competition
• Pressure on prices
• Sales rises but lower rate profit decline

4. Decline Stage:-

• Sales fall because of new product competition and changing consumer behaviour
• Sales and profits fall down
• Promotional expenses cut down.