Meaning of transaction costs of agrarian enterprises’ economic potential

UNC 339.138:664.61

Number, year
4(81), 2014

Malyuk S.

Activity of any business is always connected with the concept of the product that it produces. In the marketing sense – the product is considered not simply as a result of production, but as the product that is provided with the support of the manufacturer, which is achieved using such marketing tools as competent advertising company, established sales, efficient service, flexible pricing policy and more.

In marketing theory there is no clear distinction between «goods» and «product». Thus, some authors understand by the term «product» «concrete result of material or intellectual production that has qualities that characterize his purpose, and properties for which it was purchased and consumed». Other scientists understand the product as a «complex and vast ambient properties (characteristics, features, benefits and uses) designed to meet the needs of consumers». Thus, the Kotler’s model «5 levels of product» consists of five levels: the level of core values; basic characteristics; expected characteristics; appendix characteristics; potential characteristics. This approach allows identifying the perception of the product demands of consumers, competitors offer and excellent product performance.

Commodity supply Company by Kotler can be represented by the commodity nomenclature, product range, some nomenclatural positions seller. Kotler product portfolio is characterized in terms of its breadth, intensity, depth, harmony and comparability. The concept of range is closely related to the notion of structure and product range (nomenclature) positions. Assortment (nomenclature) position by J. R. Evans, is a specific model, mark or size of products. J. Schwalbach, notes that «the success of the proposal depends on the success of marketing in general; with the usual product that is well received, you can always make a good business. On the contrary, in the case of an unsuccessful proposal, any marketing efforts will not save the company from defeat».

Thus, we can conclude that a good product (goods) is the key to financial success and stability, both in the short and long term. The optimal product portfolio is individual for each company, depending on the markets, demand, production, financial and other resources. The process of determining the range and variety of goods that are produced is an integral part of the product policy of the company.

The article studies the impact of transaction costs on the formation of the economic potential of agrarian enterprises. The structure of the economic potential of agrarian enterprises was discussed. It was noted that with the change of agrarian enterprise’s position, its potential is also transformed. Its structure also became more complicated.

Malyuk S. Marketing approach to the interpretation of the essence of the product and the company product assortment


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