There are two approaches in an industrialized economy. The industry that is influenced by customer’s needs as well as the knowledge of the market (Market-Driven); and the industry that develops a product and then searches for a place to sell (Production-driven). Procter and Gamble make use of the industry that is influenced by customer’s needs; Apple develops its products then sells it. The industry that is influenced by customer’s needs consist of production of goods and provision of services. Production of goods include: Raw materials and drilling, building, and other types of production; Provision of services include: bulky and peddle trade, store and other services. The industry that develops product, then searches to sell, consist of production and service-driven industries. In a product driven industry, the primary objective is to manage supplies and make products available for sale. The bulky and peddle trade are examples of the product driven industry. Product driven businesses are quite expensive and may need a wide range of services to manage supplies. The industry can be classified into two categories which are primary industry, which deals with the whole establishment and secondary industries that deals within the business. Establishments are equipment that consist of factories (buildings) and its divisions (bulky and peddling channel). Biotechnology and Nanotechnology are developing industries. The informative industries are springing up as technology becomes more universal, and information is wrapped up in computerized products. One’s understanding of this, is that facts is well informed and received. In coming years, knowledge will be kept greatly in computerized mode.
The word “product” is related with real objects, the end products from agriculture, construction, and production exercise. Productivity are either finished goods, or units that are put together into finished goods within the organization or to its various customers. The word “service” is related with abstract or unreal objects, competency, either during the time or mark of sales, or soon afterwards or as an aiding service. An aiding service can be obtained during sales for the next service and includes items as written promises away from those wrapped up together with the product, precautionary upkeep, sanitation and overhauling. The term “duration of sale” means when a valid or invalid agreement between a purchaser and a merchant is made, and does not automatically mean when proceeds are acknowledged and made. Proceeds are acknowledged and made according to the principles of accounting that is in accordance or deems fit with the services rendered, which may be over a duration of time. A commodity is a good or service that is identical and compatible with another good or service of the same kind because it has little or no added value to its price. Several commodities are unrefined like fruits and vegetables, oil and gas. Services can also serve as commodities. The distinctive element of a commodity worker comprises of satisfaction, valued service and payment. Product-driven businesses also possess distribution and aiding services. Distribution services consist of making plans for conveyance of goods, merchant’s readiness to sell, discipline and packages of souvenirs.Aiding services comprises of overhauling, sanitation and upkeep. In order to survive competitively, businesses need to provide additional services coupled with their product donations that surpasses customer promise. Furthermore, if clients demand for such services, then they have become a member of the simple donations.
Service-driven firms are transforming into suppliers of both “product-oriented” and “service-oriented” services. In differentiating product-oriented services from distribution and aiding services, the word “service-oriented” products make it clearer. Service-oriented products must be specific, identical and redone. They are abstract products that act like real items, wrapped in an exact manner. Technology plays a vital role in the distribution process through hardware, software as well as speech sound and information medium. “Hard” products are real and “soft” products are abstract. Consumables, durables, and facilities...
Consumables as the word implies are products that are meant for consumption and they wear out when used. Examples are clothing, food, health care, household supplies and office items. Other examples are the media. Durables are products that last for a very long time. Examples are furniture and houses. Facilities are the end products of construction works and are made of durable goods.
Agreements are contractual or non-contractual in nature as it depends on the nature of the business between buyers and sellers. Consumable goods can be sold with the ability to return for exchange or pay back within a certain duration. Durable goods can be sold with a report stating the warranty and maintenance of the product. Service-oriented goods and services can be sold with a report specifying what is to be delivered and when, with guidelines for complaints. Experienced negotiators give regards to both the real and abstract because the overall cost of ownership consist of both.
As technology emerges, service-oriented goods will become universal because it brings clarity to abstract goods. New data base firms will develop.