Free M.B.A. Guide
Free MBA Resources

Masters of Business Administration Notes


About Us Advertise Contact us  Monday 27th February 2017 Success Essentials
Advertising Management
Finance Management
Home Based Business
Industrial Relations
List of MBA Colleges
Marketing Management
Office Administration
Office Management
Organisational Behaviour
Organisational Theory
Personnel Administration
Principles of Management
Production Management
Sales Management
Tally - Accounting Software

Factors Influencing Product Mix
The fundamental reason for changing product line, i.e., adding or eliminating products, is the change in market demand.


Postini Alternative

Change in demand occurs due to the following factors:
a) Population increase.
Changes in the level of income of buyers.
Changes in consumer behavior.

In India, there is an never increasing rate in the growth of population. This naturally adds to the number of buyers leading to a quantitative change in the volume of production. The developmental programmes of the Government ensure increase in income enabling the consumers to spend more. This also adds to the stream of demand qualitatively and quantitatively. In India 'Rural markets' are evolved mainly due to this reason. The consumer behavior is a continuous source of reasons that invite changes in product planning. The other reasons could be narrated as follows:

1. Marketing influences.
Production influences.
Financial influences.

All these arise out of internal economies of a firm. As long as the profit motive is the criterion for the existence of a firm, changes in production mix are inevitable.

From the foregoing discussion, it is clear that product planning has assumed front rank importance in modern market oriented business. Not only that, product planning also invites intelligent, appropriate and scientific approach. The case history of the most successful companies has convinced that product planning calls for the highest degree of top management ability and effort. It also makes it clear that under the changing marketing conditions one has to see thingsiclearly before undertaking the production of any product. Hence, it is said “marketing activities precede production activities”.

Related Articles
Marketing Myopia
Legal Restriction on Pricing
Special Problems in Pricing
Post Your Comments
Email ID
  Please enter this code in this box.
Tell a friend
Send this articles to a friend .
Your Name
Your Email ID
Friend's Email ID
  Please enter this code in this box.

© 2008 - Free MBA Reources -