Transcript A Product - QuestGarden.com

A Product is everything one receives in an exchange,
including all tangible and intangible attributes and expected
benefits.
A Classic Sport Football for example, includes not only the
ball itself but also instructions, an inflation needle, and a
warranty.
A car includes a warranty, owner’s manual, and perhaps free
emergency road service for a year.
Some of the intangibles that may go with the car include
status associated with the ownership and memories
generated from rides.
Developing and managing products effectively is crucial to
an organization’s ability to maintain successful marketing
mixes.
A product may be a good, service, or idea.
A good is a real, physical thing that we can touch, such as a
Classic Sport football.
A service is the result of applying human or mechanical
effort to a person or thing
Basically a service is a change we pay others to make for
us.
A real estate agent’s services result in a change in the
ownership of real property.
A barber’s services result in a change in your appearance.
An idea may take the form of philosophies, lessons,
concepts, or advice.
Often ideas are included with a good or service. Thus we
may buy a book (a good) that provides ideas on how to lose
weight.
Or we may join Weight Watchers for ideas on how to lose
weight and for help (services) in doing so.
PRODUCT CLASSIFICATION
Consumer Product
Business Product
PRODUCT CLASSIFICATION
Consumer Product
A product bought to satisfy personal and family
needs. There are three categories of consumer
products.
PRODUCT CLASSIFICATION
Consumer Product
These groupings are based primarily on
characteristics of buyer’s purchasing behavior
PRODUCT CLASSIFICATION0- Consumer Products
•Convenience Products
•Shopping Products
•Specialty Products
Convenience Products
Is a relatively inexpensive, frequently purchased
item for which buyers want to exert only
minimal effort.
The buyer spends little time in planning the
purchase of a convenience item or in comparing
available brands or sellers.
Convenience Products
Examples of convenience products are :
•Bread
•Gasoline
•Newspapers
•Chewing Gum
•Soft Drinks
Shopping Products
Is an item for which buyers are willing to
expend considerable effort on planning and
making the purchase.
Buyers allocate ample time for comparing stores
and brands with respect to prices, product
features, qualities, services, and warranties.
Shopping Products
Examples of shopping products are :
•Appliances
•Furniture
•Men’s Suites
•Bicycles
•Cellular Phones
Shopping Products
These products are expected to last for a fairly
long time and thus are purchased less frequently
than convenience items
Specialty Products
It possesses one or more unique qualities for
which a buyer is willing to expend considerable
purchasing effort.
Buyers actually know what they want and will
not accept a substitute.
Specialty Products
In searching for specialty products, purchasers
do not compare alternatives
Specialty Products
Examples of specialty products are :
•Unique Sports Cars
•Rare imported wine
•Specific type of antique china
•Special handcrafted furniture
PRODUCT CLASSIFICATION
Consumer Product
Business Product
PRODUCT CLASSIFICATION
Business Product
A product bought for resale, for making other
products, or for use in a firm’s operation
PRODUCT CLASSIFICATION- Business Products
•Raw Materials
•Major Equipment
•Accessory Equipment
•Component Part
PRODUCT CLASSIFICATION- Business Products
•Process Material
•Supply
•Business Service
Raw Materials
Is a basic material that actually becomes part of
a physical product.
It usually comes from mines, forests, oceans, or
recycled solid wastes.
Raw Materials
Raw materials usually are bought and sold
according to grades or specification.
Raw Materials
Examples of Raw Materials are :
•Gravel
•Trees
•Aluminum
•Wood
•Copper
•Cow
•Tomato
Major Equipment
Includes large tools and machines used for
production purposes.
Some major equipment is custom-made for a
particular organization, but other items are
standardized products that perform one or
several tasks for many types of organizations.
Major Equipment
Examples of Major Equipment are :
•Cranes
•Bulldozers
•Furnaces
•Dump Truck
•Oven
•Printing Press
Accessory Equipment
Is standardized equipment used in a firm’s
production or office activities.
Compared with major equipment, accessory
items are usually much less expensive and are
purchased routinely with less thought.
Accessory Equipment
Examples of Accessory Equipment are :
•Hand tools
•Computers
•Carts
•Calculators
•Pots, Pans, Utensils, Plates
Component Part
Is part of a physical product and is either a
finished item ready for assembly or a product
that needs little processing before assembly.
Component Part
Examples of Component Parts are :
•Tires
•Computer chips
•Switches
Process Material
Is used directly in the production of another
product.
Unlike a component part, a process material is
not readily identified in a finished product.
Process Material
Like raw materials, process materials are
purchased according to industry standards,
grades, and specifications.
Process Material
Examples of Process Material are :
•Preservatives or additives
•Industrial Glue
•Dyes
Supply
Facilitates production and operations, but it
does not become part of the finished product.
Supply
Examples of Supply are :
•Paper
•Pencil
•Oil
•Cleaning Agents
Business Service
An intangible product that an organization uses
in its operations.
Purchasers must decide if they want to do their
own services or to hire them from outside the
organization.
Business Service
Examples of Business Services are :
•Financial
•Rubbish
•Marketing/Advertising
•Janitorial
•Legal
PRODUCT CLASSIFICATION
NOTE:
A single item can be both a consumer and a business product.
A broom is a consumer product if you use it in your home.
However, the same broom is a business product if you use it in
the maintenance of your business.
PRODUCT CLASSIFICATION
NOTE:
After a product is classified as a consumer or business
product, it can further categorized as a particular type of
consumer or business product.