Fast-Moving Consumer Goods

(noun)

These are products that sell quickly and at a relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial.

Examples of Fast-Moving Consumer Goods in the following topics:

  • Sales Presentation

    • For a strikingly good pitch, one must know exactly what the other party wants and doesn't want.
    • A salesperson gets only one chance to make a good first impression.
    • In case of consumer categories who have less attention span, the first method of attention-grabbing is usually a question or statement that might surprise or shock the listener.
    • Sellers of low-value, fast-moving consumer goods are usually known to deploy the first method.
    • In the second strategy, a "positive statement" is adopted in solution selling and in direct selling to corporate and or high value and or capital goods selling.

  • Product categories

    • Packaged goods are tangible and are consumed in one or a few uses, such as in the case of beer, soap, or fuel.
    • Consumer examples include furniture, TVs, computers, clothing and automobiles.
    • Convenience products are products that consumers want to purchase frequently, immediately, and with a minimum of effort.
    • Examples here include: soft drinks, cigarettes, fast foods, newspapers, public transportation and candy bars.
    • Shopping goods are purchased only after consumers make comparisons with competing goods based on such attributes as price, quality, style, or color.

  • Mapping Preferences with Indifference Curves

    • Economists mapping consumer preferences use indifference curves to illustrate a series of goods that represent equivalent utility.
    • A critical input to understanding consumer purchasing behaviors and the general demand present in a given market or economy for specific goods and services is the identification of consumer preferences.
    • One of the primary tools leveraged by economists mapping consumer preferences is the indifference curve, which illustrates a series of bundled goods in which a consumer is indifferent.
    • A consumer would be just as happy with any combination of Good X and Good Y on the curve .
    • A consumer with no preference between Burger King and McDonald's, for example, might consider them perfect substitutes and be indifferent to spending all of their fast food money on one or the other.

  • Determining Segmentation Variable(s)

    • For example, the Christian consumer attends movies less frequently than consumers in general. - Population density can also place people in unique market segments.
    • High-density cities such as New York City, Hong Kong, and London create the need for products such as security systems, fast-food restaurants, and public transportation.
    • Consumer preferences may bear no relationship to location.
    • Gender has historically been a good basis for market segmentation.
    • If a marketing manager is aware of where the specific segment of potential customers is, he or she can design the appropriate market strategy to move them through the various stages of readiness.

  • The Law of Demand

    • If the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in quantity of good demanded by the consumer will be negatively correlated to the change in the price of the good or service.
    • The change in price will be reflected as a move along the demand curve.
    • The demand curve will shift, move either inward or outward as a result of non-price factors.
    • A Giffen good describes an extreme case for an inferior good.
    • These goods are known as a Veblen goods.

  • Demographics

    • Still, marketing managers must understand consumers intimately.
    • These consumers have an interest in high-quality household goods and in-home health care.
    • People in the US are moving south.
    • New York had the largest population of all states in 1950, but in the 1990s, fast-growing Texas pushed the barely growing New York to number three.
    • More than half of the four million immigrants that located in the United States between 1990 and 1995 moved to California, Texas, or Florida.

  • Tempo

    • A tempo marking that is a word or phrase gives you the composer's idea of how fast the music should feel.
    • How fast a piece of music feels depends on several different things, including the texture and complexity of the music, how often the beat gets divided into faster notes, and how fast the beats themselves are (the metronome marking).
    • Tempo indications such as "Not too fast", "With energy", "Calmly", or "March tempo" give a good idea of how fast the music should feel.
    • Again, the use of these terms will vary from one composer to the next; unless beginning and ending tempo markings are included, the performer must simply use good musical judgement to decide how much to slow down in a particular ritardando or rallentando.

  • Consumer Choice and Utility

    • When goods are "free," an individual should consume until the MU of a good is 0.
    • When demand is elastic price and total revenue (TR) move in opposite directions.
    • When demand is inelastic, price and TR move in the same direction.
    • This will help you remember that price and TR move in the opposite directions.
    • Since MR decreases twice as fast as AR (or D), it will intersect the Q axis halfway between the origin and the intercept of the AR function.

  • Classifying Consumer Products

    • Consumer products can be classified as convenience, shopping, or specialty goods.
    • A convenience good is one that requires a minimum amount of effort on the part of the consumer.
    • In contrast, consumers want to be able to compare products categorized as shopping goods.
    • Crisco shortening, for instance, may be a unique product in the mind of a consumer, and the consumer would pay any price for it.
    • A person may wait a long time for that individual and might even move with that person to another hair salon.

  • Social Responsibility and Welfare of Customers

    • Adopting socially responsible practices that benefit customers and society is fast becoming a competitive advantage in global business.
    • Social responsibility has thus become part of the latest management strategies where companies try to create a positive impact on society, while strengthening their brand image and doing good business.
    • Since the beginning of the 20th century, there has been a concerted effort in the United States to implement consumer protection laws related to food, drugs, and cosmetics.
    • The emergence of consumerism during the 1960s intended to increase consumer influence, power, and rights in dealing with corporate institutions.
    • From providing free leaflets offering "green" tips, to advice on how to safely dispose of electronics, social marketing is fast becoming a competitive advantage in global business.