Supply Chain – First Principals
Extracts taken from a paper written in 2001 by SC Champion and AP Fearne
Summary: Lines 14-19:
This paper examines the differential characteristics of commodities and products and their respective marketing systems.
“It identifies the circumstances under which wool and/or its derivatives might be classified either as a commodity or a product and argues that in today’s dynamic consumer markets where intangible factors are increasingly important purchase drivers, consumer value may be lost through the use of inappropriate marketing”.
Conclusion: Line: 384-386
Given wool’s position as a natural fibre, its high price relatively to its competitors and its potential vulnerability to fashion, their appears to be a case for further development of the intangible product characteristics of the wool fibre in an effort to better meet consumer demand.
Marketing systems are required which effectively transmit both ‘hard’ and ‘soft’ product attributes and do so with the aim of meeting the needs of the consumer.
The table at right provides an excellent comparison of the two approaches.