Your indentation needs to be consistent. Pick an indentation size (4 spaces recommended) and stick with it. Each line should be indented at some multiple of this indentation size.
I've commented your code with the number of spaces preceding each line (note the inconsistencies):
menu = {} #simple menu # 0
menu['1']="Add product." # 0
menu['2']="Delete product." # 0
menu['3']="View stock" # 0
menu['4']="Exit" # 0
while True: # 0
options=menu.keys() # 2
options.sort() # 2
for entry in options: # 2
print entry, menu[entry] # 8
selection=raw_input("Please Select:") # 8
if selection =='1': # 3
print "Need the following data:" # 8
id_prod = raw_input("Product id: ") # 8
int(id_prod) # 8
name = raw_input("Product name: ") # 8
price = raw_input("Product price: ") # 8
int(price) # 8
stock = raw_input ("How many are there: ") # 8
int(stock) # 8
print "You're adding the following data", id_prod, name, price, stock # 8
newProd() # 6
elif selection == '2': # 3
name = raw_input ("Enter the name of the product you want to delete: ") # 8
deleteProd(name) # 7
elif selection == '3': # 3
print "Here's your stock" # 8
viewStock() # 8
elif selection == '4': # 3
print "Goodbye" # 9
break # 9
else: # 3
print "Unknown Option Selected!" # 9