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1、Background Information,Products,Background Information,1. product In commerce, a product is good or service which can be bought and sold . In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise . In manufac
2、turing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market.,Background Information,In general usage , “ product” may refer to a si
3、ngle item or unit ,a grouping of goods or service , or an industrial classification for the goods or services. The verb produce is from the Latin produce (re), (to) lead or bring forth . The noun product is “a thing produced by labor or effort” .Since 1575 , the word “ product” has referred to anyth
4、ing produced . Since 1695 , the word has referred to “thing or things produced”,Background Information,2. The structure of a product We can distinguish three layers of a product: core product: focus on the benefit, core advantage which determines our decision. actual product: emphasis on 5 physical
5、of a product: quality ,brand name ,features, style and design ,packing . augmented product : Postpurchasing service and additional service provided by the company.,Background Information,Example: a cell phone（数字式蜂窝移动电话） The core product: to make phone calls The actual product: Brand name well-known
6、or not . Qualitygood or bad , won awards(奖品/奖金) etc.(usually based on the brand ) Featuressuch as text message（短信） ,camera.（the functions of the product） Style and design color of the cell phone ,width and length，slim (thin) / bulky (large and of an inconvenient shape) . Packing(when a customer purc
7、hase it ) in a box ,wrapped() in bubble wrap（气泡卷） .etc. The augmented product: one year warranty（保修） guarantee.,Background Information,3. Introduction to IKEA History IEKA was founded in Imhult, Sweden. in 1943 by Ingvar Kamprad ,then 17.The company name is a composite of the first letters in his na
8、me in addition to the first letters of the name s of the property and the village in which he grew up .This acronym is incidentally similar to the Greek word and to the Finnish word oikea ,Background Information,Originally, IEKA sold pens , wallets, picture frames ,table runners , watches, jewelry a
9、nd nylon stocking or practically anything Kamprad found a need for that he could fill with a product at a reduced price. Furniture was first added to the IKEA product range in 1947 and in 1955 ,IKEA began to design its own furniture .The company motto is “ Affordable Solution for Better living”,Back
10、ground Information,At first，Kamprad sold his goods out of his home and by mail order ，but eventually a store was opened in the nearby town of Imhult It was also the location for the first Kamprad warehouse store which came to serve as a model for IEKA establishments elsewhere and on march 23， 1963，t
11、he first store outside Sweden was opened in Asker， a Norwegian municipality outside Oslo.,Background Information,Products IEKA furniture is well known for its modern ，utilitarian designMuch of IEKAs furniture is designed to be assembled by the consumer rather than being sold preassembled .IEKA claim
12、s this permits them to reduce costs and use of packaging by not shipping air ；the volume of a bookcase ,for example ,is considerably less if it is shipped unassembled rather than assembled .this is also a practical point for many of the chains European customers, where public transport is commonly u
13、sed; the flat back distribution methods allow for easier transport via public transport from the store to a customer home for assembly.,Background Information,IEKA contends that has been a pioneering force in sustainable approaches to mass consumer culture .Kamprad refers to the concept as “democrat
14、ic design”, meaning that the company applies an integrated approach to manufacturing and design .,Background Information,In response to the explosion of human population and material expectations in the 20th and 21st century, the company implements economies of scale, capturing material streams and
15、creating manufacturing processes that hold costs and resource use down ,such as the extensive use of particle board . The intended result is flexible, adaptable home furnishings, scalable both to smaller homes and dwellings as well as large houses.,Background Information,Store format Newer IEKA stor
16、es are usually very large blue boxes with few windows. They are often designed around a “one way” layout which leads customers along “the long natural way” . This layout is designed to encourage the customer to see the store in its entirety .The sequence involves going through furniture showrooms , housewares ,then the warehouse where one collects flatpacks for products seen in the showrooms ,and then arrive at the cashiers station to make payment.,Background Information,Whilst the origi
