ENTREP REPORT OUTLINE (04/04/22)

PABLO
MIDAY
SANTOS
ADAY
MARTIN

PRODUCT PLANNING
Is systematic decision-making relating to the totality of the development and
management of a firm's product, including its branding and packaging. It should
pinpoint opportunities, develop appropriate marketing programs, coordinate a mix
of products, maintain successful products, upgrade faltering products, and remove
undesirable products.

The product consists of the following:

1. Features are the attributes of the product which include characteristics and its uniqueness.

2. Functions are the uses of the product and its contribution to customer satisfaction.

3. Benefits are the positive effect that the product will go to give to the customers
after buying the product.

A product is anything that can be offered for the satisfaction it may be an idea, a
physical. entity (a good), a service, or any combination of the three. Product is that
bundle of satisfaction that the buyer receives as the result of a lease or purchase. it
includes the physical good or service itself (its form, taste, smell color, and texture), the
function of the product in use', the package, the label the warranty, the manufacturer's
and retailer's services.

LEVEL OF PRODUCT
1. Tangible Products - are basic physical or appearance, it can be a service or an idea having
precise specifications and is offered under a given or specified description or model number.

2. Augmented Product - includes the image and service features of a certain entity.
It gives emphasis on the intangible benefits that the customer will be getting from buying the
product.

3. Generic Product - focuses on what a product means to the consumer, not the
seller. This will signify the purpose" of ltr existence and the primary objective
in creating the product.
TYPES OF PRODUCTS
GOODS are the sale of the physical products from the manufacturer to the consumer
or final and ultimate user. These are tangibles that satisfaction can be measured with results or
pieces of evidence as manifested through physical development.

1. Durable goods are physical products that are used over a long period of time. These
products are expensive because of the quality of materials used.
2. Non-durable goods are physical products that are quickly and easily consumed or worn out
become obsolete, unfashionable, or no longer popular. These products are inexpensive and can
easily be damaged.

SERVICES are rental of goods, alteration or repair of goods owned by consumers, and personal
services. These are intangible products that satisfaction can be measured in future preferences.

1. Rented Coods Service - The consumer rented the facility or products of the sellers for a
certain period of time.

2. Owned Goods Service - Repair and maintenance services rendered by the sellers to the
products of the customer.

3. Non-Good Service - Personal service on the part of the seller; most common are
the expertise and the profession of the seller.

CHARACTERISTICS OF SERVICES
1. Intangibility - Services cannot be displayed, transported, stored, packaged, or inspected
before buying. The credibility of the service provided most of the
time counts.

2. Perishability - Services can not be stored for future sale. The skills of the provider must
enhance and develop to better serve the customer.

3. Inseparability - Service providers and services cannot be separated. It cannot accomplish

the purpose if one is missing.

4. Variability - Service is difficult to standardize because it varies upon the

performance of the provider.

CONSUMER PRODUCTS
Consumer products are goods and services destined or produced for the final consumer for
personal, family, or household use. The use of the goods or services designates it as a
consumer product.
Classification of Consumer Products:

1. Convenience Products - are those purchased with the minimum or less effort because has
knowledge of product characteristics prior to shopping. The consumer is not willing to search or
look for information and will accept a substitute rather than visit another store.

A. Staples - low-priced items that are routinely purchased on a regular basis. Basically,
these are the products for everyday use.
B. Impulse products - are items that consumers do not plan to buy. The customer has
attracted to buy the product for some reasons like the very impressive promotional
campaign or low or sale items.

Classification of impulse products:

● pure - escape buying out of normal or everyday routine
● reminder - previous and past experiences remembered
● suggestion - an item seen analyzed and evaluated for the first time
● planned - purchase based on a sale offer.

C. Emergency - items purchased out of urgent need. These products are needed
immediately to lessen the possible future problems.

2. Shopping Products - are those in which consumers acquire further knowledge or

information in order to make a purchase decision. Consumers will exert effort in searching and
looking for information because these products have high prices and are bought in frequently.

A. Attribute-Based Shopping Products - customers get information and evaluate product

features, performance, options, warranties, and other factors.

B. Price-Based Shopping Products - customers judge product attributes to be the same and
look around for the least expensive item.

3. Specialty Products - are the particular brands and stores to which consumers are loyal.
They are willing to make a significant or specific effort to acquire the brand desired and will pay
a higher or above the other price than competitive products. Substitutes are not acceptable.

INDUSTRIAL PRODUCTS
Industrial Products are goods or services purchased for use or consumption in
the production and manufacturing of other goods or services, in the operation of a
business or for resale to other customers.

Are materials and services used to operate a business

Industrial Products are categorized based on the degree of decision-making involved in cost,
rapidity of consumption role in product, and change in form.
1. Installations - very expensive, non-portable goods which are used in the production process
and do not become part of the finished product. They last for many years and do not change in
form. They involve a high degree of consumer decision-making.

2. Accessory Equipment - moderately priced portable goods which last a number

of years requiring a moderate amount of consumer decision-making. They become part of the
finished product

3. Raw Materials - unprocessed primary materials from extractive and agricultural industries.
The natural environment promotes a good source of raw materials.

4. Component Materials – semi-manufactured goods which undergo further changes in form to

be a part of the finished products. The quality of these materials strengthened the credibility of
the product to the public.

5. Fabricated Parts – finished products of other companies (bought from them) which form part
of the manufactured product without further changes in form.

6. Industrial or Operating Supplies - inexpensive convenience goods which are rapidly

consumed and are necessary for the day-to-day operation of the firm. They do not become part
of the finished product.

ELEMENTS OF A PRODUCT MIX

1. Product Item - a specific model, brand, size of a product that a company offers to the
public.
2. Product Line - a group of closely related product items of the company.
3. Product Mix – consists of all the different product lines a company offers for satisfaction.
4. Product Mix Width - number of different product lines the company offers to the market.
5. Product Mix Depth - number of product items within each product line designed to the
market.
6. Product Mix Consistency - relationship among product lines in terms of common end-use
that the company design, distribution outlets or dealers, consumer group, and price
range levels.

PRODUCT POSITIONING
The entrepreneur must create an image for the public on how they want to position the product.
The customers or target market must be well informed about a new product - what is it, what
can it do, is it better than the other products, and who should buy it.

The company must inform the market of the different concepts a product must be:
 ● low price and high quality
● high price and high quality
● low price and low quality

example:
● Ariel detergent soap: they claimed that their products are high price and high quality.
● Surf detergent soap: they claimed that their products are high quality but low in price.

INDUSTRIAL SERVICES
Acts rendered to the industry or company to attain its goals and objectives.

A. Maintenance and Repair Services - includes painting, machinery repair, and janitorial
services
B. Business Advisory Services - management consulting, advertising agency services,
accounting, and legal services

PRODUCT LIFE CYCLE

The Product Life Cycle concept describes a product’s sales, profits, customers, competitors,
and marketing emphasis from its beginning until it is removed from the market.

STAGES IN THE PRODUCT LIFE CYCLE

I. Product Development - the company must think of a new product.

The new product is a modification, creation, and innovation of an existing product that makes
the product more meaningful to the customer.

The new product planning process involves a series of steps:

1. Idea Generation - Searching and looking for a new product or business opportunity. The
employees, channel members, competitors, and customers can be a great source.

Methods:
a. Brainstorming - all the members of the group can contribute by sharing ideas,
comments, and suggestions.

b. Analyzing existing products - a successful product that captures a great market can
be analyzed as a basis for creating a new product

c. Reading trade publications - an inspirational story of a successful entrepreneur can

 lead to the development of a new product.

d. Visiting supplier's facility - suppliers' raw materials can be used as a method to

innovate and modify existing products.

e. Surveys - getting feedback coming from the customers and potential market.

2. Idea Screening - ideas that are unsuitable, attractive, or poor are junked. Ideas are rated on
the basis of rating 1-10 together with attributes.

Ideas are rated in the following categories: General, marketing, and production characteristics

3. Concept Testing -ideas that have passed the screening stage will not require feedback from
the customer. It measures customer enthusiasm by asking a potential consumer to react to a
picture statement or oral description of a product'

4. Business Analysis is a review of market factors, revenues, costs, and trends

● Demand Projections - sales potential; sales growth; rate of repurchase
distribution intensity
● Cost Projections - per unit cost; raw materials cost; cost of existing facilities and
resources; breakeven point.
● Competition - Market share of a Company and competitors; strengths and
weaknesses of competitors; potential competitors.
● Required Investment - engineering, patent search, product development, testing;
promotion; production; distribution
● Profitability - time to recover initial cost; per-unit profits; distribution
intermediaries; control over price; Return on Investment

5. Product Development - ideas are converted into tangible form. This stage involves:
● Product construction: type and quality of materials. method of production, production
time, and cost requirements per unit; plan capacity, sizes, and colors

● Packaging: materials used for promotion of storage; cost; sizes and color;

● Branding: choice of new or existing name; exclusivity; trademark protection.

● Product positioning: selecting a market segment

● Consumer attitude and usage testing.

6. Test Marketing - involves selling a fully developed product in a selected

city and observing an actual or on the spot performance under the chosen
marketing plan. Depending on the results, a firm can decide to go ahead,
modify the product services, modify the marketing plan or drop or delete
the Product.

7. Commercialization - this involves the actual marketing of the product in the

target market. The different activities to introduce the product to the market
must be presented

II. Introduction

A new product is introduced into the marketplace and the objective is to

generate customer interest. the rate of sales growth depends on the desirability
of the product, competition is limited or selected, losses are experienced because of high
production and marketing costs. Initial and Immediate customers are called innovators who are
willing to take risks because the product is new in the market. Promotions must be informative
and free samples may be desirable.

III. Growth
The product gains wider consumer acceptance and the objective is to expand distribution and
the range of available product alternatives. More firms enter the profitable and tested market.
Profits are high because the mass market buys from a limited group of firms. Basic models are
modified and chosen; distribution is expanded coupled with mass advertising to meet new
goals.

lV. Maturity
The product's sales level and companies try to maintain lower prices, better product features for
as long as possible. The market is saturated, penetrated and competition is at its highest level.
Company profits decline because discounting becomes a popular and high cost of advertising.
Products are available at most outlets at varying prices. Promotion is very competitive.

STRATEGIES FOR MATURE PRODUCTS:

1. Develop new uses or functions and new purposes for products.
2. Develop new or add the latest product features.
3. Find new classes of consumers or new potential markets for present products.
4. Find new classes of consumers for modified products.
5. Increase product use for new product users.
6. Change marketing policies or strategies.

V. Decline
The product's sales fall as substitutes and new competitors enter the
market. During this stage, firms may reduce or lessen the items produced and
outlets used, promotions utilized, or they can revive and renew the product by
repositioning, repackaging, or can terminate the product.