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P roducing and D istributing G oods and S ervices

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

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  1. UOS 2011F PBA In-Class Presentation Producing and DistributingGoods and Services E-1, Chapter. 12 Byung Do CHOI Sae Young JEON Hye Min KWON

  2. 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

  3. 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

  4. 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

  5. B2C Marketing Strategy Factors

  6. 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

  7. 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

  8. How are those product made? Process for Developing New Products

  9. Process for Developing New Products Ideas are Coming from many sources

  10. Process for Developing New Products Eliminating ideas that do not mesh with a company objective or cannot be developed given the company’s resources

  11. Process for Developing New Products Developing concept of ideas according to business analysis

  12. Process for Developing New Products Detailed descriptions of product Functioning prototypes

  13. Process for Developing New Products Selling a product in limited area Examining responses of consumer

  14. Process for Developing New Products The product is made available in the marketplace Considerable planning goes into this stage

  15. 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

  16. 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

  17. Product Life Cycle

  18. Product Life Cycle

  19. Distribution Marketing Strategy Direct Distribution producers customers Marketing Intermediaries Wholesalers Retailers

  20. Distribution Physical Distribution Direct Distribution producers customers Marketing Intermediaries

  21. Distribution Direct Distribution producers customers Marketing Intermediaries Wholesalers Retailers Marketing Intermediaries

  22. Direct Distribution Manufacturer Manufacturer Manufacturer Manufacturer CUSTOMER CUSTOMER CUSTOMER CUSTOMER 16 Contacts Manufacturer Manufacturer Manufacturer Manufacturer Marketing Intermediary CUSTOMER CUSTOMER CUSTOMER CUSTOMER 8 Contacts

  23. 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.

  24. 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

  25. Marketing Intermediaries Retailers Non-store Retailers Store Retailers

  26. 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

  27. 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

  28. 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

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