* Definition of Product
* Product Concept
* What is Branding Packaging and Labeling
What is Product?
A product is anything offered for sale by a firm to buyers to satisfy their wants and needs. Products may take any of the following forms: * A physical object like a toy or a kilo of pork
* A service like a Ferris wheel ride or a dental check-up * A place like London or Boracay
* An organization like the Knights of Columbus or the Philippine Marketing Association * An idea like “Pro-life” or “The Preservation of the ozone layer” * A personality like Coco Martin or John Lloyd Cruz
To maintain the interest of buyers, the physical products are most often provided with benefits like: Quality, Reputation of the Manufacturer, Packaging, Credit, Information about the Product, Warranty, After Sales service and Delivery. Classification of Products
Two Categories: Consumer Goods & Industrial Goods
Consumer goods are those intended for final consumption by consumers. They may be classified according to: The rate of consumption and tangibility & the consumer’s shopping habits.
Rate of Consumption and Tangibility
Durable goods are tangible goods which normally survive many uses. Nondurable goods are tangible products which are consumed in one or a few uses. Services are intangible goods like activities, benefits, or satisfactions which are offered for sale.
Consumer’s Shopping Habits
Convenience goods are those which are purchased with a minimum or effort. Many of them are readily available in many retail outlets. Examples are soap, bread, soft drinks, and milk. Shopping goods are those that are bought only after an effort to compare with other goods is made. Examples are radio sets, cell phones and shoes. Specialty goods are those that the consumers seek to buy and they are not willing or they are not able to accept substitutes. Examples are special medicines, jewellery, and exotic foods like turtle eggs. Unsought goods are those that are not yet wanted by or are still unknown to the consumers. Because of the said reasons, consumers use no effort to seek them. There are two types of unsought goods, the new unsought goods and the regularly unsought goods.
New unsought goods are really new ideas or products that the consumers still have to know to be motivated to buy. An example is the papaya soap when it was first introduced. Regular unsought goods are those that stay unsought but not unbought forever. Examples are encyclopaedias, educational plans, memorial plans, and life insurance plans.
Industrial goods are those used in the production of other goods. They are categorized as follows: Installations, Accessory Equipment, Raw Material, Component Parts and Materials, Supplies & Services.
Installations refer to industrial products with long life, are generally expensive, and they form part of the major capital equipment of an industrial firm. Examples are buildings, generators, computers, elevators, and others. Accessory Equipment used as aids in the production process. They have a shorter usable life than installations. Examples are hand tools and lift trucks in factories, fax machines, and desk in offices. Raw Materials are unprocessed goods that will become part of another product. Raw materials have two types: Farm products and Natural products. Farm products are those grown by farmers like palay, tomatoes, eggplant, coconut, and milk. While the natural products are those which occur by nature like fish, lumber, gold, diamond, coal, and oil. Component Parts and Materials are processed industrial goods that will still be used and become an actual part of the finished product. Component materials are exemplified by paper for further processing into printed magazine, textiles into dresses, and flour into bread. Component parts are exemplified by tired mounted in motor cars, strings in violin, and...