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Product A product is anything that can be offered to a market to satisfy a want or need.

A product may be: Goods: physical goods that can be sold through warehouse, retail outlets and over internet. Services: it includes intangible entities like hospital services, transportation, entertainment, professional services. Experiences: of river rafting, yoga camp can be marketed as a product to experience seeker. Events: sport matches, music. Persons: marketing can be used to create, establish, and market film-stars, politicians and sport persons. Idea: idea marketing is used in social marketing. Prevention of child labour, girl-trafficking, women awareness, vitamin-A program. Levels of product: a. b. c. d. e. Core product Basic product Expected product Augmented product Potential product

Type of product a. Consumer product: Products purchased to satisfy personal and family needs are called consumer products. E.g. food items, clothes, fridge b. Industrial products: products bought for use in an organization or to make other products are called industrial products. E.g. fuel, raw-material, tools. Buyers intent and the ultimate use of the products determine whether a product is consumer product or industrial product. Very often an industrial product can be a consumer product. E.g. petrol used in an commercial vehicle is an industrial product on the other side petrol used in a personal vehicle is an consumer product. Product that are both industrial and consumer products a. b. c. d. e. Fuel Stationary items Electrical items (bulb) Vehicles Furniture

Types of consumer products 1. On the basis of the nature of products a. Perishable consumer products Cant be stored for a long period of time. Time span between productions to consumption is very low. Marketers use very few and controlled level of distribution. E.g. fruits, green vegetables, milk, meat b. Non-durable consumer products Have relatively longer life span than perishable. Quality decreases if stored for longer period Soap, shampoo, packaged food and drink Short marketing span time c. Durable consumer products Long lasting, consumer use it to gain benefits and services for many years. Car, motorcycle, refrigerators 2. On the basis of the buying motives a. Necessity products Are bought by consumers to satisfy their psychological, safety and social needs. Basic utilities and benefits are attached with the products. Food items, homes, clothing, education. b. Luxury products Bought by customers to meet their esteem and self actualization needs. Self image, ego and status motives drive the buyer to purchase such products Jewelry, cars, holiday packages, scotch, whisky etc.. 3. On the basis of the buying involvement a. High involvement products Consumers are highly involved in information search and evaluation stages of buying process. Consumer has much to learn about product attributes and benefits Consumers are highly involved when product is expensive, behold several risks, purchased infrequently, and are highly self-expensive. Cars, computers, mobiles b. Low involvement products Consumers easily buy these products without much planning, information search and evaluation. Consumers are generally aware of different brands and their attributes and dont make comparison.

Products are generally less expensive, less risky, frequently purchased and not at all self expensive. Toothpaste, tea, nail-cutter 4. On the basis of buying behavior: it most widely used form of classifying product in marketing. It facilitates in preparing marketing consideration for various product types. a. Convenience products Generally low priced item bought frequently Low involvement products, consumer doesnt plan purchase of these products and buys whenever need arises High brand awareness but less brand loyalty as in case of unavailability of purchased brands, the consumer is ready to accept the alternate brand. Generally non-durables bought in few quantity Tooth-paste, toilet soap, sugar and razor-blades Marketing consideration: Types Staple products: regularly bought item such as tooth-paste, salt, sugar, razor-blades Emergency products: normally bought at a time of an emergency e.g. flash light batteries, headache tablets b. Shopping products Less frequently purchased goods and services High priced items than convenience goods and last for the few years Consumers generally compare prices, quality, style of products at various stores before making final purchase. Consumers have low brand awareness, brand loyalty. Consumer show moderate to high-involvement in purchase of shopping products Home appliances, furniture, clothing, shoes and hardware Marketing consideration Brand name is less important compared to reputation of manufacturer and retailer Packaging plays less important role Shorter channel of distribution is used Normally packaged and sold under brand names Standardized products, mass produced and merchandised Largest chain of distribution and maximum number of retail outlets are used Aggressively advertised and often supported by sales promotion

Particular types of shopping goods are clustered in a definite market to facilitate comparison by consumer. E.g. furniture market in bagbazar, hardware in teku Extensively advertised at national as well as local level Store display plays important role to attract consumers to visit the stores Types Homogeneous products: consumer perceives different brands as similar in terms of features and styles but different in terms of price. Consumer only compare prices e.g. refrigerators, hardware goods. Heterogeneous products: consumer perceives shopping products different in terms of major attributes. They compare price, quality, and features of brand while buying heterogeneous products. E.g. clothing, shoes, furniture c. Speciality products: A general product can also be special product for a buyer if he/she perceives the features of products as unique and special for him/ her self Buyers show high-involvement in making information collection and evaluation during purchase decision. Consumers show very high degree of store and brand loyalty Consumers dont make comparison among alternative brands; instead, they buy the brand that they intend. High or low priced, frequently or infrequently purchased Electronic equipment, jewellery, camera, beauty salons, tailoring services Marketing consideration Marketing effort is directed at maintaining quality and unique features of product to maintain loyalty. Selectively distributed, in-case of speciality services the service provider maintain their own outlet. Advertising is targeted at loyal customer informing them about the availability and location of retail outlets. Manufacturer and retailer jointly share promotion responsibilities. d. Unsought products: Very low consumer awareness and desire to purchase Generally high priced Consumer show very little interest to the products Insurance policies, magazine subscription

Marketing consideration Marketed through an aggressively selling effort, push-selling is used Direct selling, personal selling, sales promotion tools are used to create consumer interest on product.

Types of industrial products 1. Materials and parts Unprocessed and semi processed items that will be converted in to final products by a manufacturer. Materials change their form and utility several times while parts dont change their form in course of time. Instead parts become an actual component of finished products. Types of material a. Natural material Lie in natural state such as mineral, oil, petroleum Source of supply is limited and cant be substantially increased by producers Controlled by few suppliers Bulk in nature and command low unit price Marketing consideration Product are graded in terms of basic attributes and content Price is largely negotiable between buyer and supplier and is affected by demand Transportation plays a vital role as it largely affects cost Direct link between supplier and industrial user b. Agricultural products Provided through farming e.g. rice, wheat Seasonally produced and perishable in nature Sources of supply are controlled by small producers scattered over a long area Cant be altered to a large extent but can be increased or decreased

Marketing consideration Collection from smaller producers, transporting are major activities Mostly graded and priced accordingly Products are stored in specially designed warehouse Seasonally purchased, price is negotiable between buyer and seller

c. Parts e.g. tyres, buttons Marketing consideration Directly marketed by producer to buyer Price is set through negotiation Advertising, packaging dont play vital role Manufacturer prefers to buy from reputed and loyal supplier as its parts determine the quality of final product manufactured. 2. Capital goods: fully manufactured products that are used in the production of other products or for providing services Types a. Installation High priced capital products Longer life and dont require frequent purchaser Type of installation varies with the nature of business e.g. for restaurants ovens and refrigerators and for power company turbines and generators Directly affects the scale of operation in a manufacturing or service organization Marketing consideration Reputation of manufacturer is single most important factor in marketing Direct purchase from manufacturer Installation is backed up by services of regular repair; maintenance from manufacturer Manufacturer tries to promote companys, public image through publicity, public relation b. Equipments Not used directly in production process but assist production activity to run smoothly Less expensive, purchased routinely and is treated as expensive item E.g. tools, office machines, delivery vans, computers,

Marketing consideration If order value is high, they market directly to industrial user and if it is low, they sell through retail outlets Low priced equipments (tools, office equipment) are marketed through retail outlets Companys reputation and brand name is vital Products are standardized and supported by repair, warranty and replacement of parts facilities.

3. Supplies and business services: short lived goods and services Types a. Operating supplies Help in production and providing service to customer Low priced, short lived and frequently purchased. e.g. fuel, lubricants, paper etc.. Marketing consideration Marketed through retail outlets, long channel of distribution Standardized and branded Extensively advertised and also targeted at consumer market b. Business services Maintenance and repair services, management consultancy advertising services required by an organization. Marketing consideration Product life cycle Product life cycle depicts the sales history of a product over time It is strategic tool that is used for analysis and interpretation and market dynamics It facilitates the decision makers in planning and strategy formulation for products according to their stages in life cycle. Assumptions Every product has a limited life: every product has a limited life span that may range from a month to hundreds of years. Products have limited life span due to change in consumers tastes and preferences and change in technology Plc analysis is conducted for a product category: although consumers need, technology, and brands also have their own life cycles. Plc analysis is conducted for a category product such as noodles, computers etc Different buyer groups buy products during different phases: market pioneers try the product at introduction stage, while other groups (early adopters, early majority, late majority and laggards) adopt product in later stage. Shape of plc differ for different types of products: not all products have bell shaped sales Usually marketed directly to organization Service provider contacts the organization and negotiates a longterm deal to provide services

curve depicted in plc diagram. Some products linger in introduction stage for a while before they enter in to a growth stage. Products like tea, coffee are found to undergo long maturity period. Hip-hop, rap music showed rapid growth and rapid decline without maturity period. Plc stage require different marketing strategy: the change in sales and profitability during the four stages of plc pose different challenges and threats along with creation of new opportunities. So, in order to minimize threats, challenges and gain from opportunities, organization should implement separate marketing strategies in the four phases of product life cycle.