MKC2610 Lecture Notes - Lecture 8: Category Management, North American Industry Classification System, Rolex
6 Jun 2018
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Week 8 Lecture: Strategic retail operations management in the global market
Agenda
• Recap of some basic concepts related to products
• Classifications of products
• Merchandise management
• Adaptation vs. Standardisation
What is the difference between product, goods, commodity and merchandise and offering?
• Everything we consumer are the products
• Product in the language of marketing is the collection of the attributes – its an offer; something
produced for sale that has value in it to meet the needs of the consumers
• Different terminology – the definition is different
• Focus on the physical side of something we produce
• Goods: are further along the distribution process/channels – industry, consumer goods, focus on the
flow of products along the distribution process
• Commodity: quantity and volume of products – international trade
• Merchandise: things we produce/sell – in the context of retailing, focus on the transaction itself
• Offering: a package, focus on the value, benefits
Product classifications
• Who are the end users, what is the purpose of the product?
• Based on use: industrial goods and consumer goods
• Based on durability and tangibility:
o Non-durable (can’t last long) goods (toilet paper, groceries)
o Durable (lasts for years) goods (tv, furniture, cell phone)
o Services (not tangible)
Consumer goods classification
Convenience Goods
• Buy frequently and immediately
• Such as pen, noodles, cigarette, tea etc
Shopping Goods
• Buy less frequently
• Such as clothes, shoes, mobile, electronics etc
Speciality Goods
• Special purchase efforts
• Different behaviour – investing time to researchx
• Such as car, motorbike, Rolex watch, gold, land and building etc
Unsought Goods
• New innovations
• Such as gift items, decorative items etc
Document Summary
Week 8 lecture: strategic retail operations management in the global market. Agenda: recap of some basic concepts related to products, classifications of products, merchandise management, adaptation vs. standardisation. Special purchase efforts: different behaviour investing time to researchx. Such as car, motorbike, rolex watch, gold, land and building etc. International trade different countries have different classifications: classifications to mark different products, number system makes things easier to facilitate the transaction and for statistics. The us bureau along with mexico and canada, adopted a new classification system of product, the. North american product classification system (napcs); and a classification system of industry (naics) Product/merchandise mix or assortment: products of a company. Product lines (mainly used by manufacturers): closely related products: assortment is the assembling of stocks whose prices, colours, and other attributes reflect the needs of a store"s target market. Each different item of merchandise is called a stock keeping unit (sku) Width: number of different product lines carries by the company.
