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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