Product-mixes in different sectors

As allocation and reallocation of national resources is important but yet difficult task, so is the task of formulation and reshuffling of product-mixes in different sectors of the economy. The latter task touches upon decisions relating to the kind of product basket an industry or a specific economic activity should offer to the country. For example, an automobile industry has the option of manufacturing commercial and non commercial vehicles; a banking industry has the option to lend money to large scale and small scale borrowers or to institutional and no institutional borrower etc. undoubtedly, much will depend on the national priorities laid down, whether by mandate or consensus still there may be enough internal autonomy within enterprises in especially in free and mixed economies to formulate their own product mixes.

 However, in the euphoria of development activity and because of the large investments, entrepreneurs may be prone to manufacture what cost compulsions and short term profit prospects suggest. This may, at time, lead to unbalanced product mixes wherein different product items compete with each other and adversely affect the overall profit position. To overcome such problems of unbalanced product mix marketing contribute very significantly through its product planning and development function. This function involves all those activities which start with the conceivement of a product idea through its development till the stage of manufacturing. Its contribution is not only in planning a product according to the consumer needs and preferences but also in striking a balance between market necessities and production feasibility Also, by a continuous surveillance of product behavior, it can discern those product items which have become obsolete in terms of market acceptance and profit contribution. This may also help to assess the relevance of manufacturing technology employed in the firm, industry and the country. Thus, this function of marketing contributes to the production of those utilities that have greater chances of maximizing consumer satisfaction and return on investment. When its contribution is measured in aggregates, it may become evident that it performs a catalytic action by coordinating market necessities, production feasibility profit opportunities and national economic priorities and constraints.