Tuesday, March 22, 2011

Exercise-5(your understanding about "DEATH OF THE CONSUMERS" .. cite examples )

What? "DEATH OF THE CONSUMERS"? Where did they go? What happen to them? Who is the primary part of the chain of the economy today? Do the consumers exist today? All those questions are coming from us when our instructor taught that very intriguing and exciting topics.

What is consumer anyway? From the site “Consumer is an individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Any time someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer. But consumer has different to customer. The terms "consumer" and "customer" are often used interchangeably, but a consumer and customer are not always the same entity. In essence, consumers use products while customers buy them. A consumer may also be a customer and a customer can also be a consumer, but situations occur where this is not the case. In general, your marketing efforts should be geared toward the consumer, rather than the customer. Customers are the ones who purchase your products. Consumers are the ones who actually use your products, so the customer may not be the actual consumer of your product. For example, suppose you own a small business that manufactures and distributes children's games or toys. While the children are the actual users, or consumers, of your product, they are not your customers. Instead, the customers are the parents of the children who actually purchase your products for them. The difference between a consumer and a customer impacts how you market your products. Customers will buy your product only if consumers demand your product, so your marketing efforts should target the end user as opposed to the buyer. Using the children's toys example, your marketing efforts should be geared toward exciting the children about your products so they will ask their parents to make a purchase. Those are coming from the internet article. To elaborate more on my own understanding we are the primary elements in the economy or the main factor of one business, without the consumer there was no business now that is successful. Since we are the primary component who uses the products and services of the company, we are the one who can make the company or business a successful one. We are the everyday purchaser of a high quality or standard, either on an absolute scale or service in retail. My second thought it describes a purchaser of technical equipment who wants to obtain goods of a better quality than consumer items, but can’t afford professional items. Here, the word is a blend of professional and consumer. In my case when I purchase something I move through a series of steps like:

Act of identifying the problem – I always do these when or during I buy some stuff especially in expensive price. Though the product is brand new we can’t denied the fact that there are some bug or problem but at all the items. Consider the factory error, for example buying a brand new laptop then after 1 day of purchase there are some damage that able to function in the specification of the laptop. So it is better to identify explore the items before purchase it.

Examine the product for concealed items – the second one is to make search about that item so that you can recognize that items and make a canvass. Look around to an area and ask to your friend or other people for such as sale orders, opinions or suggestions.

Other possibility assessment of value – the act of examining something in order to judge its value, quality, importance, extent and condition. Since you are finding a alternative way or alternative things that able to serve as a substitute or the possibility of choosing two different things.

Act of choosing or power to choose – of course we have a power or a decision to choose one product or we can choose what the items that qualifies to our standard are.

Notice to the acquisition evaluation – make a evaluation to the price of such items. Moreover you are using money to buy that item makes sure you have the quality item that you have to purchase.

Today the market and industry are doing a paradigm shift. There is marketing convergence. So much for that there are also a trend of marketing convergence it is depending on the demand or result, needs and wants of the community. Century ago and many years grown up from the old era, now we are now in the era of technology the demands or requests of the human beings are more growing and growing according to their wants and needs it is increasingly high. A convergence of technology has a result that gives the consumers the convenience of having a changeable or they can customize according to their wants and can give there needs according to the style of living. When technological convergence first gives birth to a new multi-technology, the various technologies it is comprised of are usually at a slightly lower standard than independent devices. Usually within a year or two, however, this disparate quality is reduced to a virtually unnoticeable level. Technological convergence if appropriately managed can play an important role in national economic and social development of every nation. Governments can capitalize on the opportunity to stimulate market development and meet previous unmet society communication needs.

That was one of the reasons why the consumer today is death. Since the new era or the style of living today have different way in growing more capable one. Not like in the pass years our industry of business are common and ordinary business, like producing such product that they made then sell it to the market. The consumers can choose only a different color or even a shape. They can’t customize their stuffs on their wants and needs. Can you imagine? The old era of our business can’t give our satisfactory not only our self but also our money expending much of it. Readymade products that can’t be customize and can’t be change according to our wants and needs, it is satisfying to you? Some are satisfied on what they offer. But what if we change it from new era that the consumers can create and change according to their style or we called it wants. The new era improve the marketing today. Other reason why the market is now shifting to the new paradigm because the convergence can increased market competition has lowered barriers of entry to the market for new operators and service providers. The emergence of new market players intensifies competition, giving consumers an extensive pool of providers and services to choose from and lower communication costs. Additionally in a technological convergent environment industry boundaries become blurred, allowing service providers to offer services in multiple markets. For example, besides access to television, cable operators can also offer voice telephony and internet services. Content providers can now easily access consumers with no need to own the distribution network. For example, a company may produce TV content and distributed it through cable networks without having to own it. I relate this last topic because it is the reason why the consumer is death.

We already know what is consumer. The consumer is now signing off. What a topic isn’t? This topic is all about a dying era for the consumer. Moreover we called it the “PROSUMER”. As we define what is consumer is an individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. But the term Prosumer it is still refers to the person who buys products or services for personal use and not for manufacture or resale. But there are some of conditions that may affect or can differ in consumer and prosumer. The prosumer has more advantage comparing than to the old consumer does. As what I have said I wonder and confuse where the word prosumer came. Many statements come in my mind. Now the questions are: Where did they go? What happen to them? Who is the primary part of the chain of the economy today? Do the consumers exist today? The consumer today did not go, they only substitute or replace their name. Yes, still they exist and they are also part of the chain. The consumer today is now we called “PROSUMER”. What about prosumer? Stated from Wikipedia “Prosumer is a portmanteau formed by contracting either the word professional or producer with the word consumer. The term has taken on multiple conflicting meanings: the business sector sees the prosumer (professional–consumer) as a market segment, whereas economists see the prosumer (producer–consumer) as having greater independence from the mainstream economy. It can also be thought of as converse to the consumer with a passive role, denoting an active role as the individual gets more involved in the process. More recently, in the mental health field, the word "'prosumer'" has come to mean "consumer/provider," also known as a "peer provider," such as a peer support specialist or other mental health consumer who also provides peer support mental health services (background on peer-run mental health services). The word "Prosumerise" has been coined by Widality to represent the merging of the IT and mobility requirements of the prosumer, consumer, and enterprise.” I got and searched those statement from online article. So if we talk about prosumer it is still the consumer, some economist change it for some purposes. The prosumer want to meet the standard quality to feel they need and desire for something. If it has a high quality then it will also have highest percentage of consumer-grade and vice versa. Another thing, they are consumer targeted products, at consumer prices, but containing some professional-grade functionality. And lastly a prosumer is progressive or developing gradually over the time. They have their own choice. Prosumer doesn’t depend on the available products and services offer but they have a great involvement to denote active roles on the process. It comes from the two words from producer and consumer. It’s not a new word, but it’s a word that will become the norm in the coming years. It’s already being used by companies such as Sony to describe users of video cameras. Consumer can be a capable of happening and likely to happen in the future type that can change or develop that can be included in the design and manufacture of products as a necessary, so they are given a chance to make their individual specification. Our instructor stated last meeting that the consumer today will no longer be a passive market but we are now an active market so that we can part of the creative or using the brilliant imagination process. We can customize our staff, in which everybody will satisfy of the item they bought. Now the middleman are slowly appear between maker and the buyer because of the use of e-commerce that encouraging the consumer. This sense of prosumer has been taken up by some marketing people, but remains limited in its application. The second usage describes a purchaser of technical equipment who wants to obtain goods of a better quality than consumer items, but can’t afford professional items. Here, the word is a blend of professional and consumer. Prosumers of this sort are famed for their enthusiasm for new products and their tolerance of flaws and, from the marketing point of view, have much in common with early adopters. This usage is common among those selling video equipment, digital cameras, and similar goods. In addition prosumers are now common in many fields that were once the sole province of professionals. One of the areas where the prosumer has gained a high degree of visibility is in the home improvement industry. A number of household tasks, such as the installation of ductwork, plumbing, wallpaper hanging, and installing major appliances, are now done by many homeowners. In times past, these were all functions that were considered to be the work of professionals, with only the occasional amateur attempting this sort of high profile work. The prosumer can also be associated with a number of other fields as well. Photography, interior decorating, and even the beverage industry have a number of people who have a skill or be an eligible as prosumers. As technology keeps going or nonstop to evolve, there is no something unlikely that the prosumer fact or occurrence that can be observed will continue to grow.
The other things why prosumer differ from consumer. According to the online article that I have read, if we express and have conversation about the prosumer it is a person who are researching a quality product or product values, manner of functioning and the cost or the price. Some of examples are (twitter, tumblr, facebook) and consumer product reviews (such as Amazon.com). In addition the prices comparison shopping engines such as Nextag.com and Thefind.com, before making a final decision or purchase. As you understand the prosumer has the power and had to do with in deciding from among range of options that give satisfaction to their money that they going to pay. In fact, within these web sites a Prosumer researches all aspects of a products performance, price and social acceptance in relative comparison to similar products within the same category. The Prosumer is searching for the highest quality product that best meets their personal needs for the maximum amount of money they are willing to spend. Based on that search criteria, the Prosumer is also willing to venture into new shopping distribution channels in order to purchase that product. As a matter of fact, a prosumer has a capability to take risk in order that he/she can undertake business venture that would lead to profit. Some article that I have read there was a writer named Tim Moore. He made some particular evaluation and measured assessments for the prosumer to give knowledge and to know other people the adjustment in operation and have the right path. The first one is “Understand we are all in the same boat”. Every business is in the similar situation. They are all struggling to catch up the social behavior of customer and have to gain profit from it. Not just to earn money but to have a good relationship towards them. Some of the customer feels like being only treated a customer. In which some of them left feel like suspicious and distrustful. Sellers are really defensive on the price of the products and services they have. While on the prosumer side, he/she would effort to search on the internet to find cheaper. The second one “SEE the goal”. To run business the only goal of it is to gain profit and growth. Right? But it is not just about it. The only way to have it is to build customer’s equity or the trust of the customer. The prosumer should have only to see and realize that there is no hidden agenda on your business. It’s not only about selling your product, but what’s important is to help and learn them from their experience. You should have the resolution of experiences that they have. And finally peak an interaction with you. Look hard on your operation you still have enough time to change and apply some of the good principles. And the last but not the least “Make the shift ASAP”. Most of the company still operates the advertisement to use media and advertise their sales. According to BTW, they earn trust, it’s not automatic, it takes time and isn’t as easy as advertising it, we must make the shift from ’selling things’ to noticing people!

The examples are:

1. Pertaining to electronics; are considered to be "on the fence" as a product of lower quality than a professional product, and higher quality (sometimes in the form of bells and whistles) than a consumer product. Some examples include:
• Digital camcorders
• Still cameras
• HDTVs
Link:( http://en.wikipedia.org/wiki/Prosumer)

2. From the discussion we had last meeting one of the example is the customizing the hamburger. Putting of patties is depending to the customer. These specifications from McDonald.

3. And the ipod now offering a new product that you can engrave your name at the bask case of the Ipad. The last two examples was a concept of marketing convergence that leads the consumer to have granted their want.

Today there many technology that made the people advance of what are the things they want. Howeveer now a day we are in the new era that we called Technological era. So, the people or the human being in this global world is very ambitious and desire for some technology out there. The people wanting and needing the quality of products they want without ceasing to the growing power and they control and influence by the technology they are using. Serving prosumers is a very complex task to do; their needs cannot be defined by any location, application, time of the day, or device alone. In fact, that is what makes them prosumers. They seek to be connected and serviced no matter where they are, what they are trying to do, or when they are trying to do it. They will keep on asking solutions to everyday’s problems in a very unique but very simple way. Interfaces of the product software’s for instance might as well be very accessible both for work and their social life so that these may be easily enforced with them. All these improvements and feature upgrades satisfied the prosumers and so the products were bought. and they are not yet done improving and satisfying their clients and target clients.

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