Monday, 23 September 2019

Product :- Chapter 3:- VPmarketing :-



Product

What is the basic thing around which marketing revolves

Dictionary meaning of the product is anything with you you buy from the market

But in marketing there is different definition for  product

a product is anything that can be offered to a market that might satisfy a want or need


Something that we consume to satisfy a particular need 


In marketing product is
We call anything a product which has complete a bundle of benefits and satisfaction for a buyer

We consume product to satisfy a particular want

We purchase food to satisfy our hunger so food is a product and hunger is a need in the definition of marketing

Product is is the sum total of all physical psychological symbolical and service attributes

In accounting terms production should be tangible but it in marketing terms product is associated with the services

Product is inclusive of services

Experience is also a product
When you go to amusement park that time you have electronic game Rides and  games as a product 

amusement park offer rides which is a product acceptance of credit card which is a service and audience participation in dolphin show which is experience


When you visit it McDonald you purchase a burger their physical product is just burger but along with that there are services attached to it like someone greets you, give you information about various products, accept credit card debit card or cash and returns the cash is it change, pack that burger in comfortable packing, smiles , wish you you and keep you happy, give you nice experience 
All these services are also a part of product

We also categorise product as teenagers products youth product mothers product children's product

Like for youth we have t-shirt jeans cap

Will take example of burger again
if we are getting very delicious burger at a place which is not hygienic service is not up to the mark people are not cooperative
Then we will not go there to purchase such burger nobody would like to go to such a shop where things are kept unhygienic and services are not available as per your requirement
This is the importance of services attached to product



There are three aspects of product
1 crore benefit 



Core benefit

Every work has physical characteristic
First thing is in house benefit
That means what is the basic function of the product

Example
A good car
Basic function of the car is transportation to take a person from home to office and office to home
Suppose for some reason that car is not functional and cannot perform transport function of conveyance
Even if that car is is loaded with lots of feature because that car cannot able to take a person from home to office and office to home it is potentially of no use to that person
So that's why core function is most important for the marketer to sell a product

Two burger
Suppose burger not able to satisfy the hunger of the person
Your core benefit is to satisfy the hunger
If that burger is small or has less quantity and cannot satisfy full hunger of the person basic function will not be performed
In this case also core benefit it is not received by customer like car

Example camera
Suppose a camera manufacturing company adds so many features to camera but is not providing basic function of taking photograph with good standard customer will not be happy or delighted satisfied

There are many such example where core benefit is not given proper attention and product is failed

Suppose radio in radio manufacturing company is giving lot of options like voice recording, cassate player, CD playing, memory, etc
Show more features are added but the basic function of radio is not proper then people your customer will be confused that which product is this why should  I purchase this product


2 psychological benefit

When we use product there is image formation takes place
We always talk about a person who is using branded car branded watch branded shoes about the lifestyle on living standard of a person due to the premium products he is using

It's called self image enhancement
Status enhancement

3 problem solving
I want to go to office I need transportation if public transport is not available I need to take car or bike or scooter or cycle so each product has problem solving ability feature or characteristic


Intangible products 

We have product attributes and features
Quality of the product
Packaging and labelling

Suppose on cerelac food supplement for kids a manufacturer company display Mickey mouse and kids their parents to purchase that Mickey mouse packet
Kids are not aware of the the product that it is health supplement and it is cerelac food but they are more serious about Mickey mouse packaging is also more important in marketing

Brand name is also equally important

Augmented product

Warranty and installation

If you take example of air conditioner
You will also so get support from the company e for installation, site selection, fitting etc

If you are purchasing any machinery
You will be given installation
Will be given demonstration
You will be shown all the functions of the machinery
Support is provided till machinery get start or function with full potential



Delivery
Where customer gets the product as soon as possible

In Shipbuilding industry delivery is most important for the customer
as normal delay in the shipbuilding industry is 250 days which is almost 9 month
So price of the cost or other aspects features are not that important as compared to delivery

Suppose one ship building requires 2 years so additional 250 days should be considered to get the product so delivery is utmost important

Japanese shipbuilding industry will give you product with minimum 4/5 days or one week later


Types of products

Consumer products
60% of the world's products are consumer products

End user mostly uses consumer products
Consumer products are the products where customer derives is utility & 
Product finishes

Like you purchase a burger satisfy your your hunger and now that burger does not exist anymore



Industrial products

These products are used for the production of other products like raw material

Cotton is used for making thread and then  cloth



Convenience products
products which are easily available called convenience products
Example beverages soft drinks


Impulse products
Those drugs which you see and want to purchase immediately on the spot


when we watch some products then  we want to purchase them immediately 

our sense organ stimulates to purchase that product



Perishable products
Some products that get perished very soon is called perishable products like milk products vegetables
It's written on them that it should be stored in refrigerator


Durable goods
Products that are survived over a  period of time
Like shoes cloth watch






Emergency goods

Medicines

Shopping goods
Products that we don't think too much while purchasing them
We select them very easily without any  waste of time


Speciality goods

We watch some products and compare them
Like we compare wrist watch and then we purchase

These are the premium products in expensive category


Unsaught goods
Marbles
Insurance 




Nondurable goods/ consumption or consumable goods

Use this product at one occasion or at one time

Sweets which we generally purchase at the time of festivals

Rakhi at the time of raksha bandhan

Flags at the time of independence day & republic day



Capital goods

Machinery goods
Factory equipment
These are used in the production of large scale infrastructure products



Parts and material product

In textile mill there is cotton for the cleaning which is very important in the mill for cleanliness


Supplies and services
Fuel /petroleum product

Facilitate the production aur machine




By product
a product that results from the manufacturer of another product

From sugar industry main product is sugar but by product is baggase
Which is left over after sugarcane juice is removed from the sugarcane

Baggase is Not main product of sugar industry 
But it is meant lot of paper industry and used as Raw  material




Replacement rate

When we purchase a product we should tell what is the frequency of replacement

 a refrigerator manufacturing company tells after 10 years you have to replace this refrigerator


Gross margin

We should decide gross margin that is manufacturing cost and selling price difference


Buyer Goal adjustment

Each and every customer want product  to be manufacturers per their requirement

Mass customization is not possible always

So we have to prepare product as per maximum required features

Mass customization is not feasible not economical every time

We will have to adjust most of the time



Duration of product satisfaction

How much time or how many years  will  refrigerator keep me satisfied or delighted

There are so many products in the world which are purchased only due to its durability 



Duration of buyer's search behaviour

How much duration customer takes to buy a product
How much time it takes customer to search for a particular product

Customer sometimes search product / sometimes don't so which are those product we have to categories







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