Some business comprises production lines which are clubbed together based on the characteristics which are similar in nature. The number of products being offered through these product lines constitutes the product mix. There are several reasons why product mix is important to an organization as far as small business organizations are considered.

Needs for the Customer
Through proper management of products an organization can meet the need of the customer. Usually if a customer is satisfied with the product then they will come and buy from the same organization. Properly tracking the feedback of the customer one can keep the production line run smoothly. As and when the requirement of the customer changes the product lines can be made slow or fast for meeting the deadlines.

Reputation of the Business
As far as the reputation of an organization is concerned with maintaining a consistent image is important for the proper management of the target market. For a business selling items offering low priced items introducing a high priced item will affect the reputation of the organization as people will get confused that the price has been increased.

Focusing on the Business
Concentrating on the product mix help organization to focus on the primary business. In the process of widening the core business, most companies increase the product lines which divert the attention from the primary business. Product lines concerning the primary business should be kept apart from diversification lines in order to get more concentration on them.