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 ?
As demonstrated here, however, the effects of setups are determined at the portfolio level because the setup requirement is driven by the joint product mix and lot-sizing decisions.
Steve Cohen, president of The Screen Machine, Reynoldsburg, Ohio, says that after the product mix has been determined, C&D recyclers should consider the manner in which they will feed the machine.
Mobile phone sales in Europe and Asia declined due to lower than expected volumes and a product mix weighted towards the lower end of the market.
Demand should benefit from a change in product mix and strong levels of construction-related repair and improvement spending.
* Improve margins by focusing on packaging solutions and product mix upgrades
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.
The result is greater sales capabilities which, combined with a broad product mix, is enabling the company to better position itself in the markets it wants to be in, said Karen Knoller, an A.M.
The curriculum is designed for the new reseller looking to get grounding in storage to widen the product mix. It is also designed for the reseller who wants to sell even more storage to the existing customer base.
Net revenue per barrel increased by 4.3% during the quarter due to product mix changes and normal price increases.
Great CEOs question everything -- current organizational structures, staffing, product mix, customers -- with a skepticism that borders on impertinence.
The information developed from the model may be used to evaluate the economic consequences of short-run product mix and other production-related decisions.
2001-8 fails to explain how a dollar-value LIFO taxpayer with hundreds or thousands of items in inventory, a constantly changing product mix and a pool that contains items subject to the floor stocks tax and items not subject to the floor stocks tax can apportion the quantity of items held on the floor stocks date among its LIFO layers.

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