Principles

of Management and
Marketing
•How do businesses
serve the market?

•What is the typical

way of earning
profits?
General Classification of
products:
• Marketing Goods- are generally
perceivable by human senses and can
therefore be inspected prior to
purchase.

• Marketing Services
 Core or Generic
Product
- the purpose for which
• t the product was created.

Actual product or
Formal Product
- differentiating factors of
a product [physical
Brand name, quality feature]
level, packaging,
design, features Delivery, credit
Augmented Product
options, warranty, - extra attributes that are
installation, after-sale not found in the actual
service product
Classification of • Consumer Goods
Products/ Use • Industrial Goods
Goods • Undifferentiated Goods
Differen • Differentiated Goods
tiation
• Consumable Goods
• Semi-durable Goods
Durabi • Durable Goods
lity
• Convenience Goods
• Shopping Goods
Type • Specialty Goods
• Unsought Goods
Goods according to use:
Consumer goods- are goods that are [ex: drinks,
purchased for consumption. hamburgers,
candy]
Industrial goods- are goods that are
purchased in order to make other goods. [ex: flour
for bread]

A good that is ordinarily a consumer

good can also be used as an industrial
good, and vice-versa.
Goods according to differentiation:
Undifferentiated goods- are products whose Brand equity- a
physical characteristics are so identical, that customer’s
it would be difficult, if not impossible, to appreciation to the
brand’s value.
distinguish one purchased from one vendor
or another. The ability of the
[ex: rock salt] manufacturers to
successfully
Differentiated products- are varied in their distinguish their
characteristics and features that they are products from
readily distinguishable from one another. other competitors
is called
branding.
[ex: cars]
Goods according to durability:
Durability- refers to the length of time a
customer can derive benefit from the
product or good purchased.

Consumable good [edible & non-

edible]- a product whose benefit can [ex: foods,
only be used by a consumer for only a drinks,
short period of time, sometimes only a detergents, and
few minutes. toiletries]
Goods according to durability:
Semi-durable goods- provide benefits [ex:
to the consumer for a longer period of clothes,
time, usually spanning several months. shoes and
belt]

Durable goods- are products that last a

[ex:
long time. They are capable of providing
automobiles,
consumers with years of beneficial use.
houses and
appliances]
Goods according to type:

Convenience goods- are products that

are purchased frequently, are usually [ex:
inexpensive, and do not require much newspapers,
purchase effort and evaluation. gums, candy]

Shopping goods- are purchased less

frequently than convenience goods, are [ex: shoes,
relatively more expensive, and require clothes,
some amount of information search and handbags]
evaluation prior to purchase.
Goods according to type:

Specialty goods- are goods that require [ex: branded

unusually large effort on t he part of luxury
merchandise,
consumers to acquire. Consumers are
works of art,
usually willing to travel great distances automobiles]
to where these goods can be purchased.

Unsought goods- are goods that consumers [ex:

seldom actively look for, and are usually investments,
purchased for extraordinary reasons, such as memorial plans,
fear of adversity, rather than desire. life insurance]
Four major attributes of Services
Intangibility- services cannot be
perceived be seen or touched. It cannot
be checked prior to purchase.

Variability- because services are

performed by human beings, no service
provider can render the same service
exactly the same way every single time.
Four major attributes of Services

Inseparability- because services are

rendered by people, the service provider must
be present each and every time the service is
provided. Services are simultaneously
produced and consumed.

Perishability- unconsumed services

cannot be stored or warehoused.
• What is the importance of
classifying products?
• What are the advantages
and disadvantages of
purchasing or availing a
service?
• Compare the effort done
by businesses selling
goods and businesses
selling/offering services.