PRODUCT - NOTES

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PRODUCT *******************************************************************************
Demand for the product is constantly shifting as needs, wants and technology all have changed as a result companies must always evaluate their existing product line and look for ways to ensure that it is up to date and in line with the consumer desires Continuous decision must be made about whether new product should be added and weather all products should we remove. A product is anything that can be used to satisfy a particular need. the word product is generally associated with the tangible offering but it is more than just a tangible offerings. *******************************************************************************
Product is anything that can be offered to a customer to satisfy a want or need *******************************************************************************
Product as physical goods service experience event, person, places, properties organizations, information and ideas that can be offered to a market for satisfying a particular want or need *******************************************************************************
Philip Kotler Defines product is a bundle of physical service and symbolic particular expected to yield satisfactions or benefits to the buyer Concept of the product is not restricted to physical goods. *******************************************************************************
Example Toothpaste it is an example of physical goods purchase Train ticket is an example of purchase of service Purchase of TICKET of movie is a purchase of experience entertainment experience Purchase of a ticket for a concert is purchasing for an event Purchasing house is a purchase of a place *******************************************************************************
products can be tangible or intangible for example toothpaste is tangible product where is a doctor service is intangible products service Differences between goods and services Goods are tangible objects that can be offered to a customer to satisfy his need or want Service as an act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything Its production may or may not be tied to physical product *******************************************************************************
Example when we purchase pen in the legal terms we have the title to the pen on the other hand when we go to the doctor to get treatment for an element neither do we own the doctor not the treatment that he gives us nor his diagnosis of the element for that matter so the purchase of the service does not result in the ownership of anything *******************************************************************************
3. Goods generally first manufactured at the place of the manufacture then distributed through the various distribution channel then sold to the customer and finally consumed in case of services the manufacturing selling and consumption happen simultaneously. Physical goods can be separated from the manufacturer of the goods and also from the customer services cannot be separated from the service provider and the service receiver customer that is services are inseparable *******************************************************************************
Manufacturers of goods differentiate their goods on the basis of services where as manufacturers of the services differentiate their services on the basis of goods Example washing machine will differential their product from that of the computer on the basis of the service like extended warranty extra Whereas the manufacturers of the services like gymnasium or health club in differential their service on the basis of physical goods like latest equipment's *******************************************************************************
5 Goods are generally consistent in nature Services are inconsistent that is if we buy a particular soap today and the same brand and variety of soap a month later there will be no difference in the two goods purchased however if we avail the service of beautician it may vary from one location to another Services are provided by people Services may vary because of change in the beautician Time when the service is availed Change in the place where services availed Change in the mindset of the customer *******************************************************************************
Goods can be stored for inventory by this we mean that goods can be stocked depending upon the demand and supply situation if a retailer of shoes knows that there is a good demand for a particular brand of shoes he will stock them in large quantities so as to meet the demand of the customers if he has stopped 500 pairs of shoes and has been able to sale only hundred days on a particular day the rest of the shoes can be carried forward for sale in the coming days however some does not hold the two same does not hold the two for the services Example of a restaurant that has seating capacity of hundred people if on a particular day there are four hundred people wanting to eat at the restaurant owner cannot create additional capacity the capacity is finite and cannot be inventoried similarly if one particular day he finds that only 50 people have availed the service balance capacity of 50 expires on the same day he cannot carry it forward to another day Difference between goods and services Goods are tangible services are intangible Goods result in ownership of the product services do not result in the ownership of anything Goods are manufactured then stored then distributed then sold and finally consumed in case of services the manufacturing and selling happen simultaneously *******************************************************************************
goods can be separated from the manufacturer and the customer services cannot be separated from the service provider and the service receiver goods can be inventory IT services cannot be inventoried often we find that manufacturers of the goods differentiate there goods on the basis of services, manufacturers of the services differentiate their services on the basis of goods Goods are consistent in nature service are variable and are inconsistent in nature Levels of the product *******************************************************************************
Core benefit :- level basic product level expected product level augmented product level potential product level each of these levels and add more customer value and five levels together constitute a customer value hierarchy *******************************************************************************
Fundamental level is the core benefit level that the customer need that the marketer tries to satisfy example if a customer is going to a restaurant to eat food the core benefit level is that the product food satisfy the hunger of the customer here the benefit that the customer seek is to satisfy his hunger by means of food. Marketers need to look upon themselves as a benefit providers other than product sellers *******************************************************************************
Second basic product level this is a second level where marketer mass now turn the core benefit into basic product Example the food that is the hunger satisfying core product is turned into a basic program is an editable tasty dish *******************************************************************************
Expected product which is a set of attributes and constituent conditions that customers will normally expect example :- Food set should be neat and clean dishes with good cutlery set on a properly led table having a proper sitting arrangement with sufficient lighting arrangement *******************************************************************************
IV Augmentation product level:- trying to meet the customers desires beyond his expectation example Fresh flowers laid on the table, alive band playing music etc. From the marketer point of view this level is very important because in today's world competition happens at this level only upto the expected level all the marketer will stand at the more or less same platform the differentiation will happen at the augmented level and potential product level. Fifth level at this level the marketer has to take into consideration all possible augmentation and transformations that the product is likely to undergo in the future *******************************************************************************
The potential product describes the future possible innovation of the product Example the restaurant providing the guest with the facility to oversee the preparation of the food and having it Customized / made to the requirements of each customer Or having a menu card that would suggest menu combination at click of a button *******************************************************************************