BRB 2013: MARKETING MANAGEMENT Topic 8 & 9: Creating and Managing Product Learning Outcome • Define product and know the major classifications of products and services. • Describe the decisions companies make regarding their individual products and services, product lines, and product mixes. • Describe the four characteristics of services and the additional marketing considerations that services require. • Describe how companies find and develop new-product ideas. • Explain the steps in the new-product development process. • Explain the stages of the product life cycle. • Explain the marketing strategies suitable for each stage of the product’s life cycle. Definition of product A product may be defined as everything, both favorable and unfavorable, that one receives in an exchange. It can be a tangible good, a service, an idea, or a combination of these things. Definition: A product can be defined as any item, which can be in the form of goods, or services that a person receives in exchange for money or some other unit of value. Broadly defined, products include physical objects, services, persons, places, organizations, ides, or mixes of these entities. Products can be divided into tangible product or intangible products. Tangible product : products that can be seen or felt. Examples of products in the form of goods (tangible) are CK perfume, Guess shirt, and Dynamo detergent. Intangible product : products that cannot be seen or touched exp. Most of the products are in the form of services. Examples of products in the form of service (intangible) are real estate agents like Rahim and Co., medical treatment in Ampang Puteri Hospital, and haircut service by Thomas & Guy.
Levels of Product. Core products A product is divided into three levels the first level is the core products , which can be defined as the problem-solving services, or main benefits that consumers are looking into when they buy a product. The core products answer the question “What is the buyer really buying?” Actual products The second level is the actual product where the products are designed along with the five important characteristics; quality level, features, design, a brand name and packaging are combined together. Augmented products The third level is the augmented product. Augmented products are the additional consumer services provided by the manufacturer, which come along with the product. Examples are after sales service, warranty, owners’ club membership, etc. CLASSIFICATION OF PRODUCT Consumer product Definition: Consumer products can be defined as those bought by final consumers for personal, family or household use. Consumer products can be classified under four different categories, which are Convenience product, Shopping product, Specialty product and Unsought product.
- Spring '17
- Marketing, consumer products, Industrial Product