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PRODUCT facilitate the flow of goods and services from producers to consumers and one of the important factors that can not be ignored.

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Presentation on theme: "PRODUCT facilitate the flow of goods and services from producers to consumers and one of the important factors that can not be ignored."— Presentation transcript:


2 PRODUCT facilitate the flow of goods and services from producers to consumers and one of the important factors that can not be ignored is to choose the right distribution channel that will be used in the framework of business distribution of goods / services......

3 Setting up the goods to be sent Terms of goods delivery requirements include provisions on implementation of the consignment of goods that are associated with: 1. destination of goods 2. time delivery of goods 3. freight transport goods Main attention in the consignment of goods, among others: 1. where the goods must be sent? 2. taken by the buyer or sent by the seller? 3. who should bear the shipping charges? 4. when the goods should be sent?

4 Time of delivery / delivery of goods can be arranged as follows: 1. directly referred to as the instantaneous prompt 2. at a certain time 3. gradually

5 Goods Classification Goods Complex characteristics including package, color, manufacturer and dealer name, obtained by the buyer to satisfy his wants and needs

6 From the marketing point of views, the types of goods are divided into: 1 The buyer purpose: Consumption and industrial goods 2. Consumption level: durable/non-durable goods and service 3. Psychological influence: functional, hedonism, and anxiety goods 4. Its characteristics

7 Consumption goods is divided into: 1. Rate of consumption and tangibility a. Durable goods: concrete goods that can be multiple times such as TV, shoes, car, etc. b. Supplies goods: concrete goods that only can be used once or coupe of times like meat, soap, fish, rice, etc c. Service: Jasa, yaitu: the action of process of serving: hair cut, doctor, etc.

8 The characteristic of goods The characteristics of the product can be used in consideration to buy such as the products durability. Supplies goods such as fresh vegetable or milk will us short chain distribution similar to newspaper and magazine Goods with bigger volume or heavy equipment is advisable to use short chain distribution or direct distribution.

9 Payment Characteristics Goods that need to be spread Primary commodities need to spread extensively, vertically or horizontally. The costumers will be more pleased if those commodities can be bought in their neighborhoods. Goods that doesnt need extensive spreading Short chain distribution will be more efficient related with the goods with limited costumers such as musical equipments, TV, radio, etc.

10 Expense Generally, long chain distribution will create higher expense which may disturb the sales. Each distribution chain will try to gain profit. To make the price lower, the company has to have willingness to gain less profit.

11 Identify the Product Sold to Costumers As the seller, we have to check order form to find whether errors such as the costumers name or goods specifications in the order invoice Thus the seller will perform: The product name The products specifications The product amount Check the product price Check the total price paid the costumer Giving signature as the legal verification Giving invoice for the buyer and making copy for archiving

12 Product Packaging Creating the companys image through packaging Good package may protect the product from damage, protect its content and weather protection Appropriate packaging will make delivery process much easier and effective.

13 Forms of Packaging Many forms of packaging material can be found in the market these include: Envelopes, pouches, bags, carton, box, bottle, jar, vial, barrel, drum, overwrap, sleeve, blister, strip, and others. Packaging requirements: 1. Physical packaging has to be purposely designed for convenient, meet legal and economical requirements 2. Packaging protects the product Weather and humidity has to be observed in designing product package. Needs protection from insect and other micro organism.

14 3. Packaging can sell products Showing product identities and distribution techniques

15 Packaging Materials Packaging materials are focused in the its material such as paper, paperboard, cellophane, plastic, steel, glass, wood, textile, etc.

16 The process of delivering products Before delivering the product to the customer, Seller must make a calculation of the price, either by using the arithmetic means of manual or electronic means of calculating total price as results of the calculation must be notified or should Customer sepengetahuan as the buyer In addition to the calculation of the invoice price of the product is another form of note sales, price lists, receipt and other documents relating to the calculation of product prices.

17 Pricing a. Flexible pricing the main point in determining flexible price is the willingness to cut the price in order to maintain its market. b. Differential Pricing Pricing based on various expense. Differential pricing for similar products. Thus, the seller will differentiate its products pricing. The costumers demand plays vital role in differential pricing. c. Mark-up Pricing Increasing the price from variable total or price cost from supplier (super market) d. Cost plus pricing Pricing by increasing the total cost percentage.

18 e. Target Pricing Pricing by purposely obtain certain profit. f. Going rate pricing In order to maintain market balance, the company determine the price follows market price.

19 g. Sealed bid pricing The price will bid in sealed document and the company will chose suppliers wit lowest price and correct requirements. h. Break Even pricing The company understands how the product will be sold in certain amount in order to cover production expenses i. Rate of Return pricing To reach re-investment as many big companies often perform.

20 j. Pricing by the supplier The supplier add marginal price with the price given t costumers in order to cover operational costs. k. Pricing by producer Producers add production costs and produstion margins. l. Variable Pricing Variable pricing can be used to determine minimal price. Total cost is not necessarily covered.

21 Break through Pricing In certain situations, the company will determine momentarily price that sometimes below its production cost using: a. Popular Brand Loss Decreasing the price of famous brands in order to attract costumers b. Special Occasional Pricing In certain occasion, the company decreasing the price. c. Wholesale The price discounted in certain period. d. Low Rate Cost The company may offer low rate financial support

22 e. Warrant and Service Agreement Giving free warranty and offer special services f. Psychological Discount Giving big discount by Diskon Psikprior price boost- up

23 Transactional Recording Method Invoice consists of: a). Product amount b). Product code c). Product name d). Content e). Price per unit f). Total price g). Discount h). Total Price Paid

24 Sales person duties a). Receiving orders from the customers b). Filling invoice form in three copies: Copy 1. Given to the costumer to be brought to the cashier when purchasing Copy 2. Given to storehouse staffs to prepare product delivery Copy 3, Recorded as the number of invoice

25 Cashier a). Receiving sales invoice of copy 1 from the buyer b). Receiving payment. c). Giving paid invoice as well as cash register to the buyer

26 Storehouse staff a). Receiving invoice number 2 b). Preparing the product c). Recording the products quantities d). Giving invoice number 2 to the wrapping staffV

27 Wrapping staff a). Receiving the produc t b). Receiving paid invoice number 2 c). Checking the invoice and the product d). Delivering the product as well as paid invoice number 2 e). Giving paid invoice number 1 to the accounting staffs

28 Payment Method a. Prepaid The buyer pay first before receiving his order b. Rembours (cash on delivery / c.o.d ) The product will be deliver after the buyer pays the product c. Cash The product has to be paid in cash d. Credit The payment can be finished in given period as leverancier credit/seller credit. e. Installment The payment can be finished ininstallment

29 In addition to the calculation of the invoice price of the product is another form of note sales, price lists, receipt and other documents relating to the calculation of product prices. Procedures in the storage warehouse, the receipt of goods, entry goods to the warehouse and fixed items of expenditure warehouse. Basically warehouse administration system consists of two recording, namely: a. The system continuously (Perpetual System) b. The periodic system (Periodic System).

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