Unit 1- Product

Meaning and definition of product:

The term product is used as a need satisfying entity. It
represents solution to customers problems. It is one key element in the
market .
Marketing mix plan begins with Formulating( Creating) and offering a
product to meet customer needs and wants. The core element in the
marketing mix is the co.’s product because it provides functional
requirement sought by the customers.
In the words of Peter Drucker , the product remains mere raw material
or at the best an intermediate till it is not bought or consumed. Hence
mostly they comprise of both tangible and intangible benefits.
It may be anything that can be offered to a market to satisfy
a want or need and include physical goods , services, experiences,
events, places, properties, organisation, information and ideas.
In most of the cases products are made up of a combination of
physical elements and services.
The decision to make a purchase is hence dependent not only on the
tangible attributes of the product but also the psychological attributes
like brand, package, warranty, image or service.
The consumer will judge the offering( product) through 3 basic
elements:
1) price
Price
2) Quality
3) Features

Attractivene
ss of the
product

Quality
Features
Definition:

According to Philip Kotler, “ Product is anything that can be offered

to someone to satisfy a need or a want”
William Stanton, “ Product is a complex of tangible and intangible
attributes including packaging, colour, price, prestige, and services that
satisfy needs and wants of people.”
Features/Characteristics of product

1. It is one of the core element of marketing mix.

2. Various people view it differently as consumers , organisations and society
have different needs and expectations.
3. The product includes both good and services.

4. A marketer can realise their goals by manufacturing, selling , improving

and modifying the product.
5. It includes both tangible and non-tangible features and benefits offered.
6. It is a vehicle or medium to offer benefits and satisfaction to customers.
7. Product includes total offers, including main qualities, features and services.
8.The importance lies in services rendered by a product and not ownership of
Product and not the physical object.
Importance of product:
1) Product is the focal point and all the marketing activities revolve
around it. Marketing activities like selling, purchasing, advertising,
distribution, sales promotion are meaningless unless there is product. It
is a basic tool by which profitability is measured.
2) It is the starting point of planning. No marketing programme
commence if product does not exist because planning for all marketing
activities such as distribution, sales promotion , price , advt, etc. Is done
on the basis of the nature , quality and the demand of the product. Thus
product decides other policies.
. 3) Product is an end- The main purpose of all mktg activities is to satisfy
customers. Producers therefore insist on the quality of the product.