Product -Require more advertising and Personal

selling.
-is any good, service, or idea that is the
created by an entrepreneur or an Intangibility
innovator in serving the needs of
-Services cannot be seen, tasted, heard,
customers and addressing their existing
felt, or smelled before purchase.
problems.
Inseparability
Types of Tangible Products
-Services cannot be separated from their
Consumer Products providers.
-Bought by final consumers for personal Variability
consumption.
-Quality of services depends on who
-Differ in the way consumers buy them
provides them and when, where and how.
Industrial Products
Perishability
-Bought for further processing or for use
-Services cannot be stored for later sale
in conducting business.
or use.
-Bought by other business, not
consumers. Types of Product Value

Functional Value
Classification of Consumer Product
-It is concerned with the extent to which a
Convenience Products
product is useful, has desired
-Buy frequently and Immediately characteristics, and perform a desired
function.
-Low price
Experimental Value
-Many purchase location
-It is concerned with the extent to which
Shopping Products
product creates, appropriate, feelings
-Buy less frequently and experiences and emotions for the
-Gather product information customer.

-Fewer purchase location Symbolic Value

-It is concerned with the extent to which
Specialty Products
customers associate psychological
-Special purchase effort meaning to a product.

-Unique characteristics 5 Product levels

-Band Identification Potential Product

-provides additional tangible and
-Few Purchase location
intangible features.
Unsought Products
Augmented Product
-New Innovations -gives more than physical product and

-Product consumer don’t want to think sets it apart from competitors.

about
Expected Product
-offers generic product plus other
attributes customers want.
Generic Product
-provides actual product with tangible
qualities.
Core Product
-fulfills basic benefit customers
want.
Types of Differentiation Strategy
The process of distinguishing a product or
service from others to make it more
appealing to a specific target market.
Product Differentiation
-Features, warranty, durability,
performance
Service Differentiation
-Ordering ease, customer training
Channel Differentiation
-Coverage, expertise
Relationship Differentiation
-Competence, courtesy, credibility
Reputation Differentiation
-Perception, advertising, communication
Price Differentiation
-By customer, by quantity, by segment
Branding Strategy
Umbrella Brand Approach
- is a branding strategy which all
products of business carry the same
brand name. Example: Honda Motors
House Brand Approach
- is a branding strategy which every
product of the same business has a
separate brand name that distinguishes
it from the rest of the company's
products. Example: Procter and Gamble
Philippines Inc.
Line Extension Approach
- is a branding strategy which existing
product has been modified or altered
resulting in new product or more
products without eliminating the original
product. Examples: Bear Brand, Colgate
Product Extension Approach
- is a branding strategy which a new
product carries the brand name to all its
products under the different categories.
Example: : Condura
Pricing
-is the process whereby a business sets
the price at which it will sell its products
and services, and may be part of the
business's marketing plan.
Five factors to consider when pricing your
products and services.
1. Costs
2. Customers
3. Competitors
4. Positioning
5. Profit
NEW PRODUCT PRICING
a. Market-skimming pricing- is a strategy
with high initial prices to "skim" revenue
layers from the market.
b. Market-penetration pricing- sets a low
initial price in order to penetrate the
market quickly and deeply to attract a
large number of buyers quickly to gain
market share.
PRODUCT MIX STRATEGIES
Product line pricing
-takes into account the cost differences
between products in the line, customer
evaluation of their features, and
competitors' prices.
Optional-product pricing
-takes into account optional or accessory
products along with the main product.
Captive- product pricing
-involves products that must be used
along with the main product.
Product bundle pricing
-combines several products at a reduced
price.
PRICE ADJUSTMENTSTRATEGIES
Discount and allowance pricing
-reduces prices to reward customer
responses such as paying early or
promoting the product.
Segmented pricing
-is used when a company sells a product
at two or more prices even though the
difference is not based on cost
Psychological pricing
-utilizes specific techniques to form a
psychological or subconscious impact on
consumers.
Promotional Pricing
-is when prices are temporarily priced
below list price or cost to increase
demand.
OTHER PRICING STRATEGY
Competitive Pricing
-refers to the benchmarking prices with
the competitors.
Cost Based Pricing
-the basis of markup is the cost of sales.
Cost Plus Pricing
-the mark up is based on a certain
percentage of the cost.
TWO CLASSIFICATIONS OF COSTS
Variable Costs
-these are costs directly proportional to
the number of products manufactured or
to number of services performed.
Fixed Costs
-these are costs not directly proportional
to the manufacturing of a product or to
the performance of the service.
PROMOTION
In marketing, promotion refers to any type
of marketing communication used to
inform or persuade target audiences of
the relative merits of a product, service,
brand or issue. It helps marketers to
create a distinctive place in customers'
mind.
Types of Promotional Tools
ADVERTISING
-is a marketing communication and
practices used to bring products,
services, opinions, or causes to public
notice for the purpose of persuading the
public to respond in a certain way toward
what is advertised.
Types of Media Used in Advertising
Television, radio, and cinema (product
placement)
Print (magazines, newspaper, brochures,
leaflets, poster etc.)
Packaging Ads, Billboard
• Transit Ads, Point-of-Purchase
• Social networking sites
SALES PROMOTION

-are activities or a series of activities that

are intended to boost the sales of a
product or service, usually short term.

Two Types:

Trade Sales Promotion

Consumer Sales Promotion

Process

Personal Selling -refers to the flow of activities or

-is also known as face-to-face selling in
which uses in-person interaction to sell
products and services.
Direct Marketing
-is undertaken through Internet, the
entrepreneur starts by building a
consumer database, performs a one-on-
one approach in building consumer
relationship, and sells the product online.
mechanism that take place when there is
an interaction between the customers
and the businesses.
People
-refers to the individual employees or
workers who are directly involved in the
production, marketing and the sale of
product or service.

Publicity

-is a communication written and

produced by public relations
professionals intended to create a
favorable public image for a client.

PLACE

-is the process of moving products from

the producer to the intended user is
called place.

Marketing Channels of Distribution

- is a marketing channel consisting of the

people, organizations, and activities
necessary to transfer the ownership of
goods from the point of production to the
point of consumption. It is the way
products get to the end-user, the
consumer; and is also known as a
distribution channel.