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Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.
2. Five Product Levels a) Core benefit b) Basic product c) Expected product d) Augmented product e) Potential product Kotler suggested that a product should be viewed in three levels. f) Level 1: Core Product. What is the core benefit your product offers?. Customers who purchase a camera are buying more then just a camera they are purchasing memories. g) Level 2: Actual Product: All cameras capture memories. The aim is to ensure that your potential customers purchase your one. The strategy at this level involves organisations branding, adding features and benefits to ensure that their product offers a differential advantage from their competitors. h) Level 3: Augmented product: What additional non-tangible benefits can you offer? Competition at this level is based around after sales service, warranties, delivery and so on. John Lewis a retail departmental store offers free five year guarantee on purchases of their Television sets, this gives their `customers the additional benefit of peace of mind over the five years should their purchase develop a fault.
3. Product Classifications a) Consumer Product Convenience Products Shopping Products Specialty Products Unsought Products
b) Business Product
4. Product Line A product line refers to a number of products that are related and developed by the same manufacturer. Product lines are not to be confused with product bundling, which combines various items into one type of product. Items within a product line generally share the same basic theme, and with the help of a successful marketing plan these products can be entirely effective.
Frequently, a product line includes different products that are offered to the public at varying price points. This way, a manufacturer or company can ensure that all products within a line will be purchased by all kinds of people. Product line extension refers to any additional products that may be added to a current product line.
5. Product Mix A product mix (or product assortment) consists of all the product lines and items that a particular seller offers for sale.. Each product line consists of several sub lines. A company’s product mix has four important dimensions: width, length, depth, and consistency. Product mix width refers to the number of different product lines the company carries. For example, Procter & Gamble markets a fairly wide product mix consisting of many product lines, including paper, food, household cleaning, medicinal, cosmetics, and personal care products. Product mix length refers to the total number of items the company carries within its product lines. Procter & Gamble typically carries many brands within each line. For example, it sells eleven laundry detergents, eight hand soaps, six shampoos, and four dishwashing detergents.
Thus.Product line depth refers to the number of versions offered of each product in the line. Restructure a mature market by driving out competitors d. Maintain or increase its share of the current market with current products. Secure dominance of growth markets c. . production requirements. describing a combination of a firm’s activities in current and new market.Ansoff drew up a growth vector matrix. Procter & Gamble’s product lines are consistent insofar as they are consumer products that go through the same distribution channels. The product-market mix strategy is illustrated in diagram below: Current products and current market: market penetration Market penetration: the firm seeks to: a. Product Market Mix Strategy . d. Increase usage by existing customer. the consistency of the product mix refers to how closely related the various product lines are in end use. distribution channels. 6. The lines are less consistent insofar as they perform different functions for buyers. or some other way. Finally. with existing and new products. b. Procter & Gamble’s Crest toothpaste comes in three sizes and two formulations (paste and gel).
7. and recognized customer perception about a firm's offering and image. Product positioning involves creating a unique. It targets a product for specific market segments and product needs at specific prices. consistent. class. Product diversification Product diversification involves modifying existing products in order to expand the market potential of a product. This two-dimensional perception map shows how Kotler analyses the positioning of an instant breakfast drink relative to variables of the price of the product and speed of preparation. Product Positioning Product positioning is closely related to market segment focus. The illustration below shows an example taken from Philip Kotler's book. or level of quality. From changes in brands to changes in a product's target market. product diversification can obtain new clients for your product by leveraging an existing product's reputation and development platform to produce and sell a modified product. use or application. Another common framework for product positioning is taken from a series of questions. Successful product diversification requires accurate targeting . You can position a product using a positioning statement that answers these important questions: • For whom is the product designed? • What kind of product is it? • What is the single most important benefit it offers? • What is its most important competitor? • How is your product different from that competitor? • What is the significant customer benefit of that difference? 8. user. Marketing Management published by Prentice Hall. A product or service may be positioned on the basis of an attitude or benefit. The same product can be positioned in many different ways. price.
6. Companies that have established expertise in producing and selling specific products are not automatically as good at producing and selling other types of products. expanding into new products requires them to manage an additional product's development and marketing. 2. Business Dictionary also points out in its definition that seasonal or cyclical companies can add new products as a way to fill in during off-seasons or slow seasons for their main product. Thus. New-to-the-world (really-new) products .and product differentiation to prevent eroding your current market and increase overall sales and profits Product Diversification Benefits New products also offer additional revenue sources and spread risks across multiple products. New Product 1. Taking on a well-established product provider in a new market is especially challenging given that company's expertise in delivering their product to a particular market . Brands that have a strong recognition and presence are able to use established brand reputation as part of delivering the message about new product offerings. 9. Cost reductions CAUSES OF NEW PRODUCT FAILURE • Failure in Market Research Findings . New-to-the-firm products 3. Improvements and revisions to existing products 5. Additions to existing product lines 4. Repositioning . Product Diversification Challenges Entrepreneur notes that companies sometimes prefer a single product focus in the beginning.
credit card portfolios). and also determine the business development strategy. a product manager manages one or more tangible products. In the financial services industry (banking. Even within the high-tech industry where product management is better defined. such as music. selects. This is due to tradition and intuitive interpretations by different individuals. In a Scrum environment. However. and usually has the main role of representing the product to the customer .). Diverse interpretations regarding the role of the product manager are the norm. their profit and loss.• • • • • • • Overestimated Demand and Size of Market Design Failure Positioning Problem Ineffective Communication/Promotion High Development Cost/ Price Pressure from Competitors Poor Timing 10. the term may be used to describe a person who manages intangible products. and develops products for an organization. the product manager's job description varies widely among companies. . A product manager considers numerous factors such as intended demographic. the products offered by the competition. information. Product manager A product manager investigates. a Product Manager is also referred to as the Product Owner. and services. and how well the product fits with the company's business model. A product manager's role in tangible goods industries is similar to a program director's role in service industries. product managers manage products (for example. Generally. insurance etc. performing the activities of product management. The product manager title is often used in many ways to describe drastically different duties and responsibilities.
 Marketing strategies are dynamic and interactive. time horizons are becoming shorter as the speed of change in the environment increases. marketing strategies are developed as multiyear plans. The generic strategy framework (porter 1984) comprises two alternatives each with two . They are partially planned and partially unplanned.strategy on the dimensions of strategic scope and strategic strength. by industry. However there are a number of ways of categorizing some generic strategies. Time horizons covered by the marketing plan vary by company.Some of the responsibilities of the Product Owner include marketing of the product and analysis of the competition. Types of Strategies Marketing strategies may differ depending on the unique situation of the individual business. with a tactical plan detailing specific actions to be accomplished in the current year. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance . Marketing strategy involves careful scanning of the internal and external environments which are summarized in a SWOT analysis. and by nation.In this scheme. 11. Marketing strategy Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Typically there are four types of market dominance strategies: Leader Challenger Follower Nicher Porter generic strategies . firms are classified based on their market share or dominance of an industry. however. Commonly. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage.
The Product Life Cycle A new product progresses through a sequence of stages from introduction to growth. It asks whether the company is on the cutting edge of technology and business innovation. thus impacting the marketing strategy and the marketing mix.This deals with the firm's rate of the new product development and business model innovation. maturity. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.alternative scopes. 12. but the most common gives four answers: Horizontal integration Vertical integration Diversification Intensification A more detailed scheme uses the categories: Prospector Analyzer Defender Reactor Marketing warfare strategies . and decline. “How should the firm grow?”.This scheme draws parallels between marketing strategies and military strategies.In this scheme we ask the question. This sequence is known as the product life cycle and is associated with changes in the marketing situation. Product differentiation (broad) Cost leadership (broad) Market segmentation (narrow) Innovation strategies . There are a number of different ways of answering that question. . There are three types: Pioneers Close followers Late followers Growth strategies .
Pricing is maintained as the firm enjoys increasing demand with little competition. . Promotion is aimed at innovators and early adopters. Product quality is maintained and additional features and support services may be added. the firm seeks to build brand preference and increase market share. Marketing communications seeks to build product awareness and to educate potential consumers about the product. and intellectual property protection such as patents and trademarks are obtained. Distribution is selective until consumers show acceptance of the product. Growth Stage In the growth stage.The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below: Product Life Cycle Diagram Introduction Stage In the introduction stage. or high skim pricing to recover development costs. The impact on the marketing mix is as follows: Product branding and quality level is established. Pricing may be low penetration pricing to build market share rapidly. the firm seeks to build product awareness and develop a market for the product.
Promotion is aimed at a broader audience. For example. Promotion emphasizes product differentiation. Discontinue the product. or left unchanged if it is being harvested or liquidated. liquidating remaining inventory or selling it to another firm that is willing to continue the product. possibly to a loyal niche segment. Distribution becomes more intensive and incentives may be offered to encourage preference over competing products.reduce costs and continue to offer it. the strong growth in sales diminishes. Harvest the product . or reduced drastically if liquidated. Distribution channels are added as demand increases and customers accept the product. Maturity Stage At maturity. Competition may appear with similar products. Product features may be enhanced to differentiate the product from that of competitors. Decline Stage As sales decline. the product may be changed if it is being rejuvenated. The primary objective at this point is to defend market share while maximizing profit. The marketing mix decisions in the decline phase will depend on the selected strategy. Pricing may be lower because of the new competition. the firm has several options: Maintain the product. . The price may be maintained if the product is harvested. possibly rejuvenating it by adding new features and finding new uses.
and chemical products. evaluation. warehousing. temperature. Packaging contains. electrostatic discharge. sterile and safe for the intended shelf life is a primary function. business. etc. Marketing . Modified atmospheres  or controlled atmospheres are also maintained in some food packages. protects.The objects enclosed in the package may require protection from. logistics. and end use.Packages and labels communicate how to use. Barrier protection . Information transmission . is often required. preserves. and personal use. storage. a single box of 1000 pencils requires less physical handling than 1000 single pencils. Some packages and labels also are used for track and trace purposes. . recycle. sale.The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. transports. informs. vibration. Permeation is a critical factor in help design. powders. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display. etc. fresh. institutional. and use. industrial. Liquids. art.13. mechanical shock. Packaging Packaging is the science. and sells. dust. Keeping the contents clean. For example. In many countries it is fully integrated into government. transport. Packaging can be described as a coordinated system of preparing goods for transport. or dispose of the package or some product. extend Some shelf packages contain desiccantsor Oxygen absorbers to life. types of With pharmaceuticals.medical. among other things. and production of packages. compression. and technology of enclosing or protecting products for distribution. and granular materials need containment.Small objects are typically grouped together in one package for reasons of efficiency. sale. food. Package graphic design and physical design have been important and constantly evolving phenomenon for several decades..A barrier from oxygen. Packaging also refers to the process of design. Physical protection . Containment or agglomeration . water vapor. information are required by governments.
Some drink cartons follow this strategy. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. display. stacking. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering.Packages can have features that add convenience in distribution. Packages may include authentication seals and use security printing to help indicate that the package and contents are not counterfeit. sale. Make sure the packaging is unique. Some points to consider when developing a packaging strategy include 1. Muller yogurts corner have a their packaging divided into two sections where consumers can mix yogurt and fruit as and when they choose. such as dyepacks. Convenience . rather than having people bring their own bottles to fill themselves. Security . and reuse. Using packaging in this way is a means of loss prevention. 2. use. reclosing. RFID tags. Packages also can include anti-theft devices. The packaging . Make sure it performs the function required. opening. Portion control . It is also aids the control of inventory: selling sealed one-liter-bottles of milk.Single serving or single dosage packaging has a precise amount of contents to control usage. Part of the firms packaging strategy maybe to make the packaging a functional part of the product. Packages can be engineered to help reduce the risks of package pilferage: Some package constructions are more resistant to pilferage and some have pilfer indicating seals.Packaging can play an important role in reducing the security risks of shipment. or electronic article surveillance tags that can be activated or detected by devices at exit points and require specialized tools to deactivate. Packaging Strategies An important part of the product decision making process surrounds the packaging of the product. dispensing. handling. 14. An effective packaging strategy can contribute to the firm’s competitive advantage. The packaging must stand out from the crowd and be different from your competitors.
There are three kinds of labels: • • • Brand:. Instructions for proper use and product care are provided on nonfood items. wrapper. Make sure packaging is identifiable and reinforces the brand. or imprinted message that is attached to a product or its package. the packaging must also preserve the product for a period of time. The packaging of the product must reinforce not just the product brand but also the corporate brand. Descriptive:. Make sure packaging promotes your product and brand.therefore encourages the consumer to interact with the product. Many users give up using the product if the packaging of it makes it difficult for the consumer to access and use the product. performance. Grade:. The brand name must be clearly visible. Its main function is to inform customers about the product’s contents and give directions for its use. Packaging must be designed so it promotes the benefits of the product and promotes the product brand. . care. and other features. If it is a food product.gives information about the product’s use.is an information tag. When the product sits on the shelf of the retailer the packaging must stand out and be identifiable by the consumer. 4. 15. The packaging must also be safe and tested to make sure consumers can safely use it.gives the brand name. Will it follow a common colour scheme? Will fonts be similar to other products with the range? In essence does the packing have to follow the family brand strategy? This is really important as consumer who walk down an aisle of a shop recognise a product through its packaging strategy and will often pick up a product without double checking their purchase. construction. trademark. 3.A descriptive label includes date and storage information for food items. seal. and the benefits of the product clear for the consumer to see. Labelling A label . It does not supply sufficient product information. or logo.
that style is considered accepted. yogurt. A fashion usually remains popular for about 1-3 years and then is replaced by yet another fashion. Fashion references to anything that is the current trend in look and dress up of a person. Typically. obsolescence is preceded by a gradual decline in popularity. 18. Fashion Fashion a general term for a currently popular style or practice. When a customer purchases and wears a certain style. foot wear or accessories. and the study of it. Fashion is a term commonly used to describe a style of clothing worn by most of people of a country. to help introduce a new product or to win consumer acceptance. etc) in one container when offering them for sale in order to increase total sales. costume. • Fashion cycle – a period of time or life span during which the fashion exists. has become so linked in the public eye with the term "fashion" that the more general term "costume" has in popular use mostly been relegated to special senses like fancy dress or masquerade wear. soups. Obsolescence Obsolescence is the state of a being which occurs when an object. while the term "fashion" means clothing generally. service or practice is no longer wanted even though it may still be in good working order. 17. Obsolete refers to something that is already disused or discarded. or antiquated. The more technical term. especially in clothing. The acceptance leads to the style becoming a fashion! Fashions DO NOT always survive from year to year Stages of the Fashion Cycle . Obsolescence frequently occurs because a replacement has become available that is superior in one or more aspects. Multiple packaging The practice of placing several units of a product (chocolate bars.16. moving through the five stages from introduction through obsolescence.
or textures are introduced – begin an upward slope Limited number of people accept them Fashion leaders wear the styles Offered at high prices and produced in small quantities. Introduction Stage:• • • • • Designs first previewed during fashion weeks at the major design centers New styles. People do not want to pay a high price. going down the slope. fashions are accepted by more people because they can afford them. Mass Production reduces the price of the fashion. 5. Updating or adding new details of design.Rise Stage:• • • Manufacturers who copy designer clothes will reproduce the styles as apparel that costs less by using less expensive fabrics or minimal detail. Obsolescence Stage:• • The end of the fashion cycle. the bottom of the hill Consumers are no longer interested in the fashion and find new looks. or texture to the look can keep it in the peak stage. 2. Fashion items available have saturated the market. . prices vary at this stage It can survive longer if the fashion becomes a classic. Mass production but prices are not necessarily low. 4. Fashion retailers mark down the price of merchandise. colors. Peak Stage:• • • • • Top of the hill Fashion is at its most popular and accepted stage.1. color. In the initial incline. Decline Stage:• • • • Consumer demand is decreasing. and more sales result 3.
A brand is the essence or promise of what will be delivered or experienced. but consumers may not buy the product 19. STYLE:- A style is a distinctive manner of construction or presentation in any art. Branding : The dictionary definition of “branding” usually refers to the name and image of a product or service. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. product or service. Importantly.. It is the process involved in creating a unique name and image for a product in the consumers' mind. Brand name A Brand name is the name by which a certain brand or make of commodity is known. Style = an item’s characteristics: crew or “v” neck sweater. Branding is also defined as the marketing practice of creating a name. brands enable a buyer to easily identify the offerings of a particular company. a brand is actually much larger. the widely advertised name of a widely distributed product A Brand name can also be defined as a set of perceptions and images that represent a company. mainly through advertising campaigns with a consistent theme.• Price of the fashion product may be low at this point. it may be in or out of fashion. 21. esp. product or endeavor. While many people refer to a brand as a logo. tag line or audio jingle. Brands are generally developed over time through: . A fashion is any style that is accepted and purchased by successive groups of people over a long period of time 20. symbol or design that identifies and differentiates a product from other products.
Brand mark cannot be called as All Trademarks are Brand marks trademark 23. device. brands provide an umbrella under which many different products can be offered--providing a company tremendous economic leverage and strategic advantage in generating awareness of their offerings in the marketplace. Brand Loyalty : The extent of the faithfulness of consumers to a particular brand. Advertisements containing consistent messaging Recommendations from friends. a or numbers or Big that symbol. consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by . Brand loyalty. expressed through their repeat purchases. group of A trade mark is a word. family members or colleagues Interactions with a company and its representatives Real-life experiences using a product or service (generally considered the most important element of establishing a brand) Once developed. 22. words. product service. letters. irrespective of the marketing pressure generated by the competing brands. these elements that is given legal Mac) protection by the government. Difference Brand Mark Trade Mark Brand name is a word. name. in marketing. or a combination of represent (Pepsi. Barbie.
they may cost less to serve. In other words. Because of the well-known brand name. consumer recognition of logos and other visual elements. or out of convenience. The study of brand equity is increasingly popular as some marketing researchers have concluded that brands are one of the most valuable assets a company has Brand equity is one of the factors which can increase the financial value of a brand to the brand owner. 25. And. brand language associations made by consumers.repeated buying of a product or service. the company can sometimes charge premium prices from the consumer. at the root of these marketing effects is consumers' knowledge. a lack of viable alternatives. Many reputed companies of the world adopt Brand Extension Strategy with the aim of increasing Brand Equity . profit margins. consumers' perceptions of quality and other relevant brand values. or other positive behaviour’s such as word of mouth advocacy. Brand Extension Strategy : Brand Extension Strategy refers to the strategy in which a company uses the same Brand Name in order to promote products of different category. consumers' knowledge about a brand makes manufacturers and advertisers respond differently or adopt appropriately adept measures for the marketing of the brand. Customers may repurchase a brand due to situational constraints (such as vendor lock-in). however. Elements that can be included in the valuation of brand equity include (but not limited to): changing market share. although not the only one. if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. Brand loyalty is more than simple repurchasing. 24. True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behaviour. Brand Equity It refers to the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices. and can bring new customers to the firm. For example. Such loyalty is referred to as "spurious loyalty".
26. Characteristics of a Good Brand Name – A good brand name should possess as many of the following characteristics as possible 1) It should be distinctive: The market is filled with over-worked names and over-used symbols. Promise is suggestive of an assurance of tooth health. or may be associated with superiority or a great personality. The customers' already existing perception about the brand helps the company in marketing the new product. In the case. “Northstar” shoes have a distinct name. The success of this Brand Extension Strategy depends on the extent of customers' association with the Brand Image. the gaining significant market presence becomes a time consuming affair as the firm is required to establish the new brand in the market through a completely new way of Brand Positioning. a company which has already established its brand name in the market for a specific product category. this strategy lowers the financial risk of launching a new product as the new product is marketed using the established Brand Equity of the parent brand. Moreover. The Brand Extension Strategy can help the companies in saving both time and money. Establishment of a new brand in the market not only requires time but also involves great expense. it is very clear that there are certain benefits of Brand Extension Strategy. A unique and distinctive symbol is not only easy to remember but also a distinguishing feature. . If a company launches a new product with a new Brand Name then. the new product easily develops an acceptance range as the customers are already familiar with the Brand Name. uses the same Brand Name at the time of launching a new product of different category. there are strong chances that the new product will be able to gain substantial market share So. The name VIP Classic for travellers is suggestive of a superior quality for a distinct class of people. where Brand Loyalty is significantly present among the customers.It is commonly found that. 2) It should be suggestive: A well-chosen name or symbol should be suggestive of quality. In this case.
If the quality of one product in the brand family is compromised. Family branding is also known as umbrella branding. Gold Spot are examples of such brand names 5) It should be adaptable to new products: Videocon is was good brand name for TVs and VCRs but when it is extended to refrigerators and washing machines. pronounce and spell. or other advantages. Family branding facilitates new product introductions by evoking a familiar brand name. Carefree is an appropriate brand name of a sanitary towel 4) It should be easy to remember: It should be easy to read. There are often economies of scope associated with family branding since several products can be efficiently promoted with a single advertisement or campaign. product acceptance. Family branding imposes on the brand owner a greater burden to maintain consistent quality. but definitely not a suitable name for TVs 6) It should be register able under the Indian laws of Trade Marks and Copyrights 27. which can lead to trial purchase. It contrasts with individual product branding. in which each product in a portfolio is given a unique brand name and identity. Difference between Family Brand versus Individual Brand Family Brand: Family branding is a marketing strategy that involves selling several related products under one brand name. Hotline was a good name for gas stoves. some of the sales appeal is lost. Surf. For this reason family branding is generally limited to product lines that consist of products of similar quality. it could impact on the reputation of all the others. .3) It should be appropriate: Many products are surrounded by a certain mystique in the minds of the consumers. Tide.
Individual Brand: Individual branding. which markets multiple brands such as Pampers. Classical economists contended that goods were objects of value over which ownership rights could be established and exchanged. networks. is the marketing strategy of giving each product in a portfolio its own unique brand name. Ownership implied tangible possession of an object that had been . The advantage of individual branding is that each product has an image and identity that is unique. There has been a long academic debate on what makes services different from goods. In exchange for money. which can be split into the two main areas of goods marketing (which includes the marketing of fast moving consumer goods (FMCG) and durables) and services marketing. also called individual product branding or multi branding. air travel. Examples of individual product branding include Procter & Gamble. corporate branding. financial services. labor. 28. and Unilever. service customers expect value from access to goods. which markets individual brands such as Dove. objects. by allowing a firm to position its brands differently. health care services and professional services. performances bring about desired results to recipients. The historical perspective in the late-eighteen and early-nineteenth centuries focused on creation and possession of wealth. and umbrella branding in which the products in a product line are given a single overarching brand name. time. or other assets for which purchasers have responsibility. Services are economic activities offered by one party to another. and includes marketing of services like telecommunications services. Often time-based. This facilitates the positioning of each product. and systems. but they do not normally take ownership of any of the physical elements involved. Services marketing typically refers to both business to consumer (B2C) and business to business (B2B) services. and effort. Service Marketing : Services marketing is a subfield of marketing. professional skills. car rental services. facilities. all types of hospitality services. This contrasts with family branding.
French economist Jean-Baptiste Say argued that production and consumption were inseparable in services. installation and project management.…useful. The DEGREE OF TANGIBILITY can be used to classify a service. This can also be represented by degree of contact •People based services: high contact : education. 1. Consultancy . Building on this theme. The Wealth of Nations. printing. or… necessary” created services that perished at the time of production and therefore didn’t contribute to wealth. Consultancy •Industrial: Plant Maintenance and repair. published in Great Britain in 1776. telecommunications •Service linked to tangible goods: domestic appliance repair. coining the term “immaterial products” to describe them. The former. 2. car service. personal finance and package holidays •Business to Business: advertising agencies. restaurants and medical services . •Highly tangible: car rental. he stated. Some of them are mentioned here. vending machines. But unproductive labor. Services can be broken down into LABOR INTENSIVE (PEOPLE based) and EQUIPMENT based services. •Highly tangible: psychotherapy. barter or gift from the producer or previous owner and was legally identifiable as the property of the current owner. legal services. produced goods that could be stored after production and subsequently exchanged for money or other items of value. distinguished between the outputs of what he termed “productive” and “unproductive” labor. 29.acquired through purchase. work wear and hygiene. however” honorable. hairdressing. Classification of services There are a number of ways in which services can be classified. Adam Smith’s famous book. On the basis of the END USER the services can be classified into following categories: •Consumer : leisure. accountancy. 3. dental care.
. and casual labour. •Commercial: banks. 4. accountancy.The overall BUSINESS ORIENTATION ( PROFIT) is a recognized means of classifications: •Not for profit: The Scouts Association. tour operators. and public sector leisure facilities. 5. •Non Professional: baby sitting. care taking. tutoring. legal services. airlines.•Equipment based: low contact: automatic car wash. cinema. launderette. hotel and catering Services. The EXPERTISE and SKILLS of the service provider can be broken down into the following categories: •Professional: medical services. charities. vending machine.
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