Smelianets N.I.

Tryhub I.P.

National University of Food Technologies

 

INFORMATION PRODUCT AND ITS INFLUENS ON PRODUCERS AND CONSUMERS

 

According to the title of the article the main idea is the relationship between global information and its consumers about the world. Informational product is result of intellectual labor, creativity, information organization and any information presented in material or immaterial form. The product is created for the satisfaction of individual or collective need in particular part of this product or the product as a whole. Utility, economical interest, profit or any other useful effect from the product may vary depending of conditions of application, terms and technical level of deployment.

Informational good is market form of informational product.

Identity aspects of informational product are:

·              Minimal unit weight of material component in the price of the product. Usually the price of the material component is near to the cost price of the information carrier;

·              Most part in product life cycle belongs to concept formation, demand analysis, presale debugging, refinement, market plantation;

·              Most part of production price is formed by qualified personal salary;

·              Informational product as a rule is an object of copyright;

·              Orientation on the final consumer. Presale development and post-sale support and development passing with close cooperation with end user;

·              Can be presented in the form of lasting service, not in the form of finished goods;

         Producer is the entity that generates animal, botanical, or other agricultural products through natural processes, usually by stimulating them with labor, nutrients, and other means. Producers have overall control on every aspect of a production. They bring together and approve the whole production team. Their key responsibility is to create an environment where the talents of the cast and crew can flourish. Producers are accountable for the success of the finished result.
         The Producer is often the first person who is involved in the project. Or they may be the agent-style Producer who focuses on the deal. Many responsibilities of the Producer span all four phases of production. In the Development stage, Producers are often responsible for coming up with the idea for a production, or selecting a screenplay. Producers secure the rights, choose the screenwriter and story editing team. They raise the development financing and supervise the development process.

         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. The consumer is the one who pays to consume the goods and services produced. So, consumers play a vital role in the economic system of a nation. In the absence of effective consumer demand, producers would lack one of the key motivations to produce: to sell to consumers. The consumer also forms part of the chain of distribution.

         Typically, when business people and economists talk of consumers, they are talking about the person as consumer, an aggregated commodity item with little individuality other than that expressed in the decision to buy or not to buy. However, there is a trend in marketing to individualize the concept. Instead of generating broad demographic profiles and psycho-graphic profiles of market segments, marketers have started to engage in personalized marketing, permission marketing, and mass customization.

         The next part of the article is devoted to the main ways of optimization and development of the informational product:

 

 

 

 

 

Producer

Consumer

Effect on the market counteragents

Get the maximum feedback from the end user to optimize the product the best possible way and to maximize its utility for the users;

Search for the optimal market segment and target group of consumers.

Get maximum control on the process of product development and creation;

Maximization of potential producers or suppliers.

Effect on the informational product

Get the maximum feedback from the end user and from the product itself;

Maximum service and support possibilities, development and correction possibility;

Minimization of production, supply and support costs.

Require the best possible satisfaction of primary qualities of the product;

Maximum service and support possibilities, development and correction possibility;

Possibility of product recycling and second-use.

Forms of informational product:

·              Documented reference and supplemental information in all fields and spheres of activity, knowledge bases and data bases;

·              Scientific researches, applied studies, “know-how“;

·              Analytics and expert opinions;

·              Informational product of massmedia and informational branches of economics are commercial advertising, PR products;

·              Educational services and attached goods;

·              Software of all kinds and types;

·              Pieces of art, presented in material or immaterial culture;

·              Online services and websites of any kind.

For my opinion, success of the product of any kind depends on its utility for the consumer and its profitability for the producer. Types and kinds of promotion or market strategy are based on the balance between the boundaries of market parties. Both market parties (producers and consumers) are forming the market behavior strategy for the information products. Market behavior strategy, tools and methods for the product optimization are formed on the two main roots:

1. Interaction between market participants – consumers and producers;

2. Market participants attitude to the product.

Methods of promotion for the informational products:

1.           From the position of the producer – maxim optimization for the specific target group.

2.           From the position of end user – direct participation in the product development, testing, production and marketing.

In conclusion users can be applied such instruments:

·              Consumer should feel his own importance and involvement in the process of creation of the product, which will be consumed by the consumer himself;

·              Product should be firstly created and put on the position as the “social product”, the commercial nature of the product should appear on the later stages of product life cycle;

·              On the stage of product’s maturity it should take the position as the integral part of consumers’ life style.

I found this article informative and interesting, and I hope you liked it.

References:

1. Herman E. Daly. Sustainable Development: Definitions, Principles, Policies // http://www.earthrights.net/docs/daly.html

2. Yuriy M. Bazhal. History of Innovation Theory of Economic Development and Contemporary Issues of the Ukrainian Transitive Economy // In: "ESHET 2002 – 6th31 Conference on Social Change and Economic Development in the History of Economic Thought": Book of Abstracts.

3. Khmelko V. Society Reproduction Processes: Structure and Dynamic. 1986-2004.