product mix

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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 ?
Taipei, July 31, 2012 (CENS) -- Amid the faltering global economy, Formosa Plastic Group's affiliates in Taiwan have geared up to upgrade their product mixes to boost profitability with higher-profit products prepared for economic turnarounds in the years to come.
To secure sustainable development, Formosa Plastic Group is determined to direct its affiliates to upgrade their product mixes, and reinvest in promising sectors of renewable energy, energy-saving technologies, and 3C (computers, communications and consumer electronics) products.
Unlike Seifoddini, who looked at multiple product mixes for a single period, Harhalakis et al.
The profitability of the product mixes selected with the TOC and ABC in the Low (1992) and Spoede et al.
An analysis of Table 3 indicates the product mix selected with operational ABC has a higher annual net income than the product mixes selected with each of the other ABC models.
There are undoubtedly many appropriate proportions of product mixes that might successfully represent a societal-marketing orientation.
In spite of the wide variation of possible product mixes, a general management concept can be drawn up.
These might include reducing costs and changing manufacturing procedures or product mixes.
By supplying Motorola with the precise metrics to select the most profitable customers, they can choose contracts with characteristics and product mixes that maximize their manufacturing profitability.
Streamlining efforts, including a rapid shift of production overseas; -- A realignment of product mixes toward key electronic parts and higher-value-added products; and
It performs "what if" business analysis based on actual costs and projected margins, calculates optimal product mixes, optimizes distribution and sourcing alternatives, identifies best locations for distribution centers and plants based on demand, and optimizes resource allocations.
The product performs "what if" business analysis based on actual costs and projected margins, calculates optimal product mixes, optimizes distribution and sourcing alternatives, identifies best locations for distribution centers and plants based on demand and optimizes resource allocations.

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