Product and Price Discussion Lecture.docx - MODULE 3.0...

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MODULE 3.0 PRODUCT DISCUSSION OUTLINEPRINCIPLES OF MARKETING17thGlobal EditionPhilip Kotler,p.243A. PRODUCTS & SERVICESDefinition of Product.Anything that can be offered to a market for attention, acquisition, use,or consumption that might satisfy a want or need; a key element in the overall market offering.It is the basis on which the company builds profitable customer relationships.Examples are events, persons, places, organizations, ideas, and services.Definition of Services.A form of product, activity, benefit, or satisfaction offered for sale that isessentially intangible and does not result in the ownership of anything.B. LEVELS OF PRODUCTSCore Product.What the customers are actually buying.The most basic level is the corecustomer value, which addresses the question:What is the buyer really buying?Whendesigning products, marketers must first define the core, problem-solving benefits, orservices that consumers seek.Actual Product.Product planners must turn the core benefit into an actual product. Thisis specific to the purchased product.They need to develop product and service features,a design, a quality level, a brand name, and packaging.Augmented Product.Product planners must build an augmented product around thecore benefit and actual product by offering additional consumer services and benefits.C. PRODUCT CLASSIFICATIONSConsumer Productsare products and services bought by final consumers for personalconsumption.Convenience Products.Theseare consumer products and services that customersusually buy frequently, immediately, and with minimal comparison and buying effort.
Examples include laundry detergent, candy, magazines, and fast food.Shopping Products.Theseare consumer products and services thatare less frequentlypurchased consumer products and services that customers compare carefully onsuitability, quality, price, and styleExamples include furniture, clothing, major appliances, and hotel services.Specialty Products.A consumer product with unique characteristics or brandidentification for which a significant group of buyers is willing to make a special purchaseeffort.Examples include specific brands of cars, high-priced photography equipment,designer clothes, gourmet foods, and the services of medical or legal specialists.Unsought Products.are consumer products that a consumer either does not know aboutor knows about but does not normally consider buying.Classic examples of known but unsought products and services are diamond rings, lifeinsurance, preplanned funeral services, and blood donations to the Red Cross.Industrial Productsare products bought by individuals and organizations for further processingor for use in conducting a business.Materials & Partsinclude raw materials as well as manufactured materials and parts.

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