PRODUCT Meaning, Goods and Services

8/8/2019 PRODUCT Meaning, Goods and Services

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MEANING, GOODS AND

SERVICES



³«the need satisfying offering of a firm«?

what you buy, that satisfies what you want to beable to do.



` It can be ³good feeling´ because you bought some

cosmetics and someone said you looked pretty««

` It could be happier stomach because you bought a meal

that tasted great«

` It could be easier homework bcoz you bought new

software for your computer««



` ³Most customers think about products in terms of the

total satisfaction«.´

`

this can lead to statements such as ³we don¶t sell cars,we sell safety !´

` we don¶t sell houses, we sell homes !!!



Value based pricing

Attractiveness

Of the product

Services mix and qualityProduct features and quality



` In planning its market offering, the marketer needs

to think through different levels of the product.` Each level adds more customer value, and

constitute a customer value hierarchy.

( Contd«. )



( Contd«. )



The primary and most basic level of product is the

core product. It¶s the fundamental service or

benefit that the customer is really buying. Thiscore level of product explains the reason for which

a customer has made a purchase.

( Contd«. )



In addition to the core product, a customer expects

many things. One can satisfy this need with

physical attributes, brand name, packaging, color,

style, aesthetic looks and quality.This helps the seller to differentiate a product from a

core product.

( Contd«. )



The intangible components of product along with

the formal and core component is called an

augmented product.

Associated services like:

` Home Delivery, Installations, Customer Care,

Warranty and Guarantee, After Sales Service,

Replacement Policy etc.

( Contd«. )



The potential product consists of every relevant

thing that one seller can offer to attract and retain

customers.

( Successful Companies add benefits to their offering that

not only satisfy customers, but also surprise and delight

them. ) ³ The best way to hold customers is to constantly

figure out how to give them more for less. ´



The challenge before the product marketers is tocreate relevant and distinctive productdifferentiation. The product differentiation may bebased on :

` Physical Differences ( eg., features, performance,durability, reliability, design, style, packaging )

` Availability Differences ( eg., available from storesor orderable by phone, mail, fax, internet )



` Service Differences ( eg., delivery, installation,

training, consulting, maintenance, repair )

` Price Differences ( eg., very high price, medium

price, low price, very low price )

` Image Differences ( eg., symbols, atmosphere,

events, media )



Any successful differentiation will tend to drawimitators. The innovator faces three choices :

`

Lower the price to protect market share andaccept lower profits.` Maintain the price and lose some market share

and profits.` Find a new basis to differentiate the product and

maintain current price.



ON THE BASIS OF Durability and Tangibility.

(1) DURABLE PRODUCTS

(2) NON-DURABLE PRODUCTS(3) SERVICES

( CONTD . )



` These are tangible goods that normally survive

many uses. Normally require more personal

selling and service, command a higher margin,

and require more seller guarantees.



` These are tangible goods normally consumed in

one or few uses. Because these goods are

consumed quickly and purchased frequently, the

appropriate strategy is to make them available atmany locations, charge only a small mark up and

advertise heavily to induce trial and build

preference.

Non durables like fresh

vegetables,toothpaste, toilet

soaps, etc.



These are intangible,

inseperable,

variable and

perishable products.Normally require more quality control, superior

credibility, and adaptability.



` A form of product that consists of activities,

benefits, or satisfactions offered for sale that are

essentially intangible and do not result in the

ownership of anything. Examples: banking, hotel, airline, retail, tax preparation,

home repairs, educational establishments, consultants,

hairdresser, doctors, stockbrokers, trainers





On the basis of user type :

1. Consumer goods.

2. Industrial goods.



` Consumer goods are generally purchased for end

consumption or customers use them for personal

or household purposes. Different types of

consumer goods are :

Convenience goods

Shopping goods

Speciality goods



Industrial Goods are mainly used for further processing in

production to support and manufacture other end

products.

Components/parts«already manufactured but not

assembled.

Eg. Denim fabric, condensers for refrigerators, microchips

for nokia, etc.



By Sameer Yadav, Pune.

Date post:	10-Apr-2018
Category:	Documents
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PRODUCT Meaning, Goods and Services

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