SCHOOL OF BUSINESS
|No. |Name |Adm. No. |Signature | |1 |Kamande Micah Muchoki |D53/CTY/PT/20683/2010 |………………… | |2 |Ongwesa I. Valentine |D53/CTY/PT/21233/2010 |………………… | |3 |Florence Kahara |D53/CTY/PT//2010 |………………… | |4 |Njeri Gichuru |D53/CTY/PT/20659/2010 |………………… | |5 |Maureen Macharia |D53/CTY/PT/20634/2010 |………………… | |6 |Eric Gate Kirubi |D53/CTY/PT/21198/2010 |………………… |
Discuss the product decisions.
Before discussing the product decisions, it is important to define a product and its classifications.
A product can be defined as anything that can be offered to satisfy human needs.
Further it can also be described as anything that is potentially vslued by a target market for the benefits or satisfaction it provides including objects, services, organizations, places, people and ideas.(woodruff 1996)
A product is anything that can be offered to the market for attention, acquisition, use or for consumption and that might satisfy a need or a want. It includes physical objects, services, places, people, organizations and ideas.
A product can be explained in three levels, i.e.:-
a) Core Product:
This consists of the problem solving component of a product or the core benefits of a product e.g. active ingredients in a soap.
b) Actual Product
This consists of the physical components or characteristics which make up the product, e.g. packaging, brand name, quality level, etc.
c) Augmented Product
Marketers often surround their actual products with goods and services that provide additional value to the customer’s purchase. While these factors may not be key reasons leading customers to purchase (i.e., not core benefits), for some the inclusion of these items strengthens the purchase decision while for others failure to include these may cause the customer not to buy. Items considered part of the augmented product include:
• Guarantee – This provides a level of assurance that the product will perform up to expectations and if not the company marketing the product will support the customer’s decision to replace, have it repaired or return for a refund. • Warranty – This offers customers a level of protection that often extends past the guarantee period to cover repair or replacement of certain product components. • Customer Service – This consists of additional services that support the customer’s needs including offering training and assistance via telephone or online. • Complementary Products – The value of some product purchases can be enhanced with add-on products, such as items that make the main product easier to use (e.g., laptop carrybag), enhance styling (e.g., phone face plates) or extend functionality (e.g., portable keyboard for PDAs). • Accessibility – How customers obtain the product can affect its perceived value depending on such considerations as how easy it is to obtain (e.g., stocked at nearby store, delivered directly to office), the speed at which it can be obtained, and the likelihood it will be available when needed.
They are broadly divided into two depending on consumers who use them. 1. Consumer products
2. Industrial products
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