Chapter 25 : Product
A product is anything that can be offered to a market for use, or consumption and that might satisfy a want or need such as soap.
Other entities e.g. People, idea, places, organizations
Services are a form of product that consist of activities, benefits offered for sale that are essentially intangible and do not result in
the ownership of anything. such as a doctor’s exam.
Levels of Products and services:
The core product, What is the buyer really buying?
The actual product may have as many as five characteristics that combine to deliver core product benefits. They are:
Style and design.
A brand name.
The augmented product includes any additional consumer services and benefits built around the core and actual products.
a. Delivery and credit
d. After sale service
Classification of products:
1. Consumer Products
Types of consumer products
Marketing Convenience Shopping Specialty Unsought
Consumer buying Frequent purchase Less frequent Special effort Either no awareness
behavior Little planning purchase Little comparison or no interest
Little effort and involvement Much planning Strong brand loyalty
Little comparison Much effort & Low price sensitivity
Price Low Higher Very high Varies
Place Intensive distribution at Selective distribution in Exclusive distribution in only Varies
convenient locations fewer outlets one or few outlets per market
Promotion Mass promotion Advertising and Targeted promotion by Aggressive
personal selling producer and reseller advertising and
Examples Tooth pastes Televisions Luxury goods e.g. Rolex Life insurance
Magazines Furniture watches Red cross blood
2. Industrial (Business) Products,:
i. Material and parts
ii. Capital items
iii. Supplies and Services Key Decisions about product:
o Standardized or adapted Market offers can be differentiated along the lines of:
o Product attributes
Style and design
o Packaging & Labeling
o Product support service
Product Line Decisions
o Product line length
Product Mix/Assortment/Portfolio Decisions
o Width (No. of product lines of a company)
o Depth (No. of items per product line)
o Consistency (how closely related the various product lines are in end use, production requirements,
distribution channels, or in some other way.
A brand is a name, sign, symbol, or design, or a combination of those that identifies the maker or seller of a product or service.
Packaging is the activity of designing and producing the container or wrapper f