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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.

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p roducing and d istributing g oods and s ervices

UOS 2011F PBA In-Class Presentation

Producing and DistributingGoods and Services

E-1, Chapter. 12

Byung Do CHOI

Sae Young JEON

Hye Min KWON

slide2

What is the product in marketing era?

It is not just something that a corporation produces

sales

It is something to provide benefit to consumer

b2c and b2b
B2C and B2B

Why is this classification important?

B2C

-Final consumption for one’s own use and not for resale

-Classified based on consumer buying habits

B2B

-Consumption for operating an organization

-Classified based on how a product is used

Different forms of consumer want Different benefits

business to consumer
Business to Consumer

The differenceof consuming habits has influenced on marketing strategy.

Convenience product

Purchasing frequently, immediately, and with little effort

Shopping product

Purchasing only after comparing competing products

Specialty product

Making special effort to purchase

business to business
Business to Business

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

product line and product mix
Product Line and Product Mix

Business environment change

There are so many small divided sectors in market

competitiveness

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

how are those product made
How are those product made?

Process for Developing New Products

process for developing new products
Process for Developing New Products

Ideas are Coming from many sources

slide10

Process for Developing New Products

Eliminating ideas that do not mesh with a company objective

or cannot be developed given the company’s resources

slide11

Process for Developing New Products

Developing concept of ideas according to business analysis

slide12

Process for Developing New Products

Detailed descriptions of product

Functioning prototypes

slide13

Process for Developing New Products

Selling a product in limited area

Examining responses of consumer

slide14

Process for Developing New Products

The product is made available in the marketplace

Considerable planning goes into this stage

slide15

Process for Developing New Products

To succeed in a market

Identifying new product

Distinguishing it from competing offerings

Google

Brand and Packages can give product identification

McDonald

slide16

Brand

A name, term, sign, symbols, design or some combination

that identifies the product of one firm.

Trademark

Brand name

Brand

Equity

Added value that successful brand gives to a product

like identification, brand loyalty

distribution
Distribution

Marketing Strategy

Direct Distribution

producers

customers

Marketing

Intermediaries

Wholesalers

Retailers

distribution1
Distribution

Physical Distribution

Direct Distribution

producers

customers

Marketing

Intermediaries

distribution2
Distribution

Direct Distribution

producers

customers

Marketing

Intermediaries

Wholesalers

Retailers

Marketing Intermediaries

slide22

Direct Distribution

Manufacturer

Manufacturer

Manufacturer

Manufacturer

CUSTOMER

CUSTOMER

CUSTOMER

CUSTOMER

16 Contacts

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Marketing Intermediary

CUSTOMER

CUSTOMER

CUSTOMER

CUSTOMER

8 Contacts

distribution3

Marketing Intermediaries

Distribution

Wholesalers

Retailers

NOT For Resale

Use for their own

For Resale

Manufacturer-Owned

Independent

Retailer-Owned

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.

marketing intermediaries
Marketing Intermediaries

Retailers

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.

Production era

Feedback

marketing intermediaries1
Marketing Intermediaries

Retailers

Non-store Retailers

Store Retailers

distribution channel decisions
Distribution Channel Decisions

Selecting Distribution Channels

Market factor

Value of product

Financial state

based on

Selecting

Distribution Intensity

Intensive distribution

Selective distribution

Exclusive distribution

consists of

slide27

Logistics

Supply Chain

A sequence of suppliers who both create and deliver the

product to customers

  • Design
  • Production
  • Sourcing
  • Packing
  • Customer
  • Service
  • Inventory
  • Management
  • Delivery
  • Warehousing

Logistics

Coordinating process of supply chain to enhance the flow of it

slide28

Logistics

Physical Distribution

Moving finished goods from the production line to the

consumer or business buyer

Customer Service – Transportation

Warehousing – Materials Handling

Inventory Control – Order Processing

Marketer

Customer