product mix

Product Mix

The set of goods and services a company provides. Generally speaking, a company offering a wider product mix carries less risk but also usually has a lower profit margin. That is, the profit margin for a company like Wal-Mart may not be high, but so long as most of its products have strong sales, it is in no danger of bankruptcy. On the other hand, a company may only offer a few products; this is high risk because there may be low demand for the products, but specializing in a niche market can result in exceptionally large profits.

product mix

The composition of goods and services produced and/or sold by a firm. A limited product mix tends to increase the firm's risk at the same time it increases the potential for large profits. Thus, a firm specializing in a niche market in electronics is likely to experience great success or large losses depending on how demand and competition develop for its specialized output. Also called sales mix.

product mix

see PRODUCT RANGE.

product mix

the mixture of PRODUCTS offered by a FIRM. Since most products tend to follow a typical PRODUCT LIFE CYCLE, it is expedient for companies to maintain an appropriate mix of newly launched products, growth products and mature lines. In addition, the firm may choose to offer a range of similar products to appeal to different sectors of the market as part of a MARKET-SEGMENTATION strategy. A firm will generally consider its product mix in the context of its broader MARKETING (embracing price, advertising, etc.). See also PRODUCT MARKET MATRIX.
References in periodicals archive ?
Volumes increased 3% and net selling prices and product mix each improved 1%.
The Everest 1-9MH reached a one-day peak rate of 850 BOE, with a product mix of about 78% crude oil and natural gas liquids, and 22% natural gas.
Mr Mansoor Ali, Chief Business Officer at PMEX commented "Our product mix has been growing for quite some time now as investors become aware of and familiar with different products.
has also moved to upgrade its product mix, planning to boost annual output of its Sixth Naphtha Cracker Plant by 700,000 metric tons, or 30% from the current capacity.
This report presents worldwide digital TV STB shipment volume and value per year for the period 2009-2014, with volume and value breakdowns by product mix.
In most of the articles reviewed by these authors and those published in recent years, cell formation problems have been considered under static conditions in which cells are formed for a single time period where product mix and demand are constant.
revenues may fall in the immediate term, but profits often will increase as the metalcasting facility takes control of its destiny, its product mix (range of castings being produced) and its customer base.
The slower property market lay behind the pressure on profit margins, as Friends said it had experienced a change in its product mix as a result of a reduced proportion of protection business.
While some of the opportunities for improvement in these systems are efficiency-oriented (elimination of many wasteful transactions), the major advantages are strategic--especially from more accurate understanding of costs to make decisions about pricing and product mix.
The model described here provides a mechanism for determining the opportunity cost of setup activity based on the interdependence of the product mix and lot-sizing decisions.
Specifically, he wants to know the most profitable product mix, whether the company has the capacity to meet demand with that mix and the value of adding capacity.
Knowing the economic outlook for these segments will help fine-tune your segmentation strategies and achieve product mix and profitability objectives.

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