What is Product?
We define a product as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Product include more than just tangible goods. Broadly define, products include physical objects, services, events, persons, places, organizations, ideas, or mixes of these entities. We use the term product broadly to include any or all of these entities.
Because of their important in the world economy, we give special attention to services. Services are a from of product that consists of activities, benefits or satisfaction offered for sale that are essentially intangible and do not result in the ownership of anything. Examples are banking, hotel, airline and home-repair services.
Level of Product:
Product planners need to think about products and services on three levels. Each level adds more customer value. 1. CORE BENEFIT
2. ACTUAL PRODUCT
3. AUGMENTED PRODUCT
The most basic level is CORE BENEFIT, which addresses the question what is the buyer really buying? When designing products, marketers must first define the core, problem solving benefits or services that consumer seek.
At the Second level, product planners must turn the core benefit into an actual product. They need to develop product and service features, design, a quality level, a brand name, and packaging and other attributes have all been combined carefully to deliver the core benefit of staying connected.
Finally, product planners must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits. BlackBerry must offer more than just a communications device. It must provide consumers with a complete solution to mobile connectivity problems.
Consumers see products as complex bundles of benefits that satisfy their needs. When developing products, marketers first must identify the core consumer needs the product will satisfy. They must then design the actual product and find the way to augment it in order to create the bundle of benefits that will provide the most satisfying customer experience.
1. Consumer Products
1. Convenience Product
2. Shopping Product
3. Specialty Product
4. Unsought Product
2. Industrial Product
The three groups of industrial products and services include materials and parts, capital items and supplies and services. Material and parts include raw materials and manufactured materials and parts. Raw Material consists of farm products and natural products. Manufactured materials and parts consist of component materials and component parts. Most manufactured materials and parts are sold directly to industrial users.
Capital items are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment. The final group of industrial products is supplies and services. Supplies include operating supplies and repair and maintenance item. Supplies are the convenience products of the industrial field because they are usually purchased with a minimum of effort or comparison.
3. Organizations, Persons, Places, and Ideas.
PRODUCT & SERVICE DECISION:
Marketers make product and service decisions at three levels; 1. Individual Product Decisions
2. Product Line Decisions
3. Product Mix Decisions
1. Individual Product Decision:
1. Product Attribute
(Product Quality, Product Feature, Product Style and Design etc) 2. Branding
5. Product support services
2. Product Line Decision:
The major product line decision involves Line length-the number of items in the product line. The line is too short if the manager can increase profits by adding items; the line is too long if the manager can increase profits by dropping items. Managers need to conduct a periodic product line...