Studied by 0 people
Looks like no one added any tags here yet for you.
Product
anything that can be offered to a market
an object of the exchange process which a company is willing to provide
key element in the overall market offering
pure tangible goods, pure services, goods-and-services combination
Services
intangible products that involve activities
4 characteristics of services
Intangibility
Perishability
Variability
Inseperability
Intangibility
cannot be seen, heard, smelled, touched, or tasted
no ownership
Perishability
cannot be stored for future use
cannot be inventoried
cannot be sold the next day
if not availed they are gone forvever
Variability
hard to replicate
Inseparability
customer has to be present when the service is being rendered
Three Drivers
Need: a lack of basic requirement
Want: A specific requirement to satisfy a need
Demand: a set of wants plus the desire and ability to pay for a product
Kotler’s five levels of product
Core Benefit
Generic Product
Expected Product
Augmented Product
Potential Product
Core Benefit
the reason customer buy a product
Generic Product
basic ver. of the product; only made up of necessary features
Expected Product
features a customer expects from a products
Augmented Product
features that differentiate the product from its competitors
Potential Product
includes all possible improvements or transformations
3 Levels of Product Decision
Indv. Product Decisions
Product Line Decisions
Product Mix Decisions
Individual Product Decision
marketers are expected to create products that sell well
need to decide on: product attributes, branding, labelling, packaging, product support services
Product Attributes
quality, features, style and design
Branding
identity of the product
can dictate a more premiumprice because it communicates quality
Packaging
first thing consumers see
important marketing tool to communicate the brand
Labeling
means to identify the product,communicate the name, etc.
Product Support Services
after sales service to see how satisfiesd the customers are with the product.
Product Line Decision
grp of products that are closely related
ex: a car brand offering different models
Product Mix Decisions
several product lines that make up the product mix
ex: PC Corner
Product Development Process
idea → define → test → make it perfect → launch
Product Life Cycle
stages of growth and decline a product experiences
Four Lifestyle Stages
Introduction
Growth Stage
Maturity Stage
Decline Stage
Introduction Stage
first time product is introduced to customers
little to no competition
Growth Stage
growing demand, increase in production, and expansion
becomes recognizable in the market
Maturity Stage
the most profitable stage
competition is in its highest level
Decline Stage
companies emulate the product
product sales begin to drop
