UOS 2011F PBA In-Class Presentation. P roducing and D istributing G oods and S ervices. E-1, Chapter. 12 Byung Do CHOI Sae Young JEON Hye Min KWON. What is the product in marketing era?. It is not just something that a corporation produces sales.
It is not just something that a corporation produces
It is something to provide benefit to consumer
Why is this classification important?
-Final consumption for one’s own use and not for resale
-Classified based on consumer buying habits
-Consumption for operating an organization
-Classified based on how a product is used
Different forms of consumer want Different benefits
The differenceof consuming habits has influenced on marketing strategy.
Purchasing frequently, immediately, and with little effort
Purchasing only after comparing competing products
Making special effort to purchase
B2B is purchased for operating an organization
So B2B focus on providing benefit to operate the organization
-Installations -Accessory equipment-Component parts
-Raw materials -Supplies
Business environment change
There are so many small divided sectors in market
So a firm add new offering by using competitiveness of product to secure other sectors
Product Mix is the assortment of product lines and individual products that a firm offers
Product Line is a group of related products marked by physical similarities for similar market
Process for Developing New Products
Ideas are Coming from many sources
Eliminating ideas that do not mesh with a company objective
or cannot be developed given the company’s resources
Developing concept of ideas according to business analysis
Detailed descriptions of product
Selling a product in limited area
Examining responses of consumer
The product is made available in the marketplace
Considerable planning goes into this stage
To succeed in a market
Identifying new product
Distinguishing it from competing offerings
Brand and Packages can give product identification
A name, term, sign, symbols, design or some combination
that identifies the product of one firm.
Added value that successful brand gives to a product
like identification, brand loyalty
NOT For Resale
Use for their own
Toward ULTIMATEUser of the product
The manufacturer owns even its facility to distribute with manufacturing plants
Wholesalers which are not affected by either Manufacturer- Owned or Retailer-Owned.
Wholesalers which is owned by Retailers by banding together.
A final link directs toward customers.
Direct connection exists between customers and the retailers.
A feedback from the customers can be directly reflected.
Retailers should be sensitive to the customers’ needs.
Selecting Distribution Channels
Value of product
A sequence of suppliers who both create and deliver the
product to customers
Coordinating process of supply chain to enhance the flow of it
Moving finished goods from the production line to the
consumer or business buyer
Customer Service – Transportation
Warehousing – Materials Handling
Inventory Control – Order Processing