Recognizing Markets


There are two major markets in marketing: the consumer market and the industrial market. The consumer market consists of all the individuals or households who want goods and services for personal consumption or use.

The industrial market consists of all the individuals and organizations that want goods and services to produce other goods and services or to sell, rent, or supply the goods to others. Oil drilling bits, cash registers, display cases, office desks, public accounting audits, and corporate legal advice are examples of industrial goods and services (products).

The important thing to remember is that buyer’s reason for buying and the end use of the product are what determine whether a product is considered a consumer product or an individual product.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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Rationale for Innovation


Understanding the rationale for an innovation consists of determining just what the components (and the core concepts underlying them) that go into the product are, and how they are linked together to deliver the new low-cost or differentiated features to consumers. For a firm facing an innovation, understanding the rationale behind it may involve asking the question: can the new mousetrap be built using the new knowledge?

When the idea of building an electronic cash register first surfaced in 1960s, the question was: can a firm actually build a cash register using transistors instead of the gears, levers, ratchets, and motors that have been used all these years? How do transistors work, and how does linking them result in calculations? Would such a register actually get people through a supermarket line faster than existing ones? What will it take to build and deliver the new product to customers?  What kind of service do customers want?

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight