Product

28 October 2023 16:12

What is a product?

A product is anything that is offered to a market to satisfy a need or want. It can be a physical good,
such as a car, a book, or a smartphone. It can also be a service, such as a haircut, a medical checkup, or a
financial consultation. Products can also be digital, such as an ebook, an online course, or a software
application.

Products are created and offered by businesses in order to generate revenue and profits. Businesses
need to develop products that are attractive to their target customers and that meet their needs and
wants. Businesses also need to price their products competitively and distribute them through the right
channels.

Here are some examples of products:

Physical goods: cars, books, smartphones, clothes, food, furniture, appliances, etc.
Services: haircuts, medical checkups, financial consultations, legal advice, education, entertainment,
etc.
Digital goods: ebooks, online courses, software applications, music downloads, video streaming
subscriptions, etc.

Products can be classified in a number of ways, including:

By type: consumer goods, business goods, industrial goods,

etc. By durability: durable goods, nondurable goods, services,
etc. By tangibility: physical goods, digital goods, services, etc.

Businesses need to carefully consider the type, durability, and tangibility of their products when
developing their marketing strategies. For example, the marketing strategy for a durable good, such as a
car, will be different from the marketing strategy for a nondurable good, such as food. Similarly, the
marketing strategy for a physical good, such as a book, will be different from the marketing strategy for
a digital good, such as an ebook.

Products are an essential part of the economy. They provide consumers with the goods and
services they need and want, and they generate revenue and profits for businesses.

What is Brand?

A brand is a name, term, design, symbol, or any other feature that distinguishes one seller's good or
service from those of other sellers. Brands are important because they help consumers to identify and
choose the products and services that they want. Brands also help businesses to build customer loyalty
and to charge higher prices for their products and services.

Strong brands are often associated with positive qualities, such as reliability, quality, and value. For
example, the Apple brand is associated with innovation and design, while the Nike brand is associated
with athletic performance. Consumers are often willing to pay a premium for products and services from
brands that they trust and respect.

Brands are created and managed through marketing activities, such as advertising, public relations,
and social media marketing. Businesses need to develop and maintain strong brands in order to
compete in

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the marketplace.

Here are some examples of brands:

Apple
Nike
Coca-Cola
McDonald's
Google
Amazon
Microsoft
Samsung
Sony
BMW
Tesla

These brands are all well-known and respected by consumers around the world. They have been built up
over many years through marketing and advertising. As a result, these brands are able to charge higher
prices for their products and services, and they have loyal customers who are willing to buy their
products and services again and again.

Brands are an important part of the economy. They help consumers to identify and choose the products
and services that they want, and they help businesses to build customer loyalty and to charge higher
prices for their products and services.

The five levels of product are:

Core benefit: The fundamental benefit or need that the product satisfies.
Generic product: A basic version of the product that provides the core benefit.
Expected product: The set of attributes or features that customers expect a product to have.
Augmented product: The additional features and benefits that differentiate the product from its
competitors.
Potential product: All the changes that a company might add to its product in the future.

Core benefit

The core benefit is the fundamental need or want that the customer is trying to satisfy by
purchasing the product. For example, the core benefit of a car is to provide transportation. The core
benefit of a smartphone is to provide communication, entertainment, and information.

Generic product

The generic product is a basic version of the product that provides the core benefit. For example, a
generic car is a four-wheeled vehicle that can transport people from one place to another. A generic
smartphone is a device that can make and receive calls, send and receive text messages, and access the
internet.

Expected product

The expected product is the set of attributes or features that customers expect a product to have.
For example, customers expect a car to have a steering wheel, brakes, and an engine. Customers
expect a smartphone to have a touchscreen display, a camera, and the ability to run apps.

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Augmented product

The augmented product is the additional features and benefits that differentiate the product from its
competitors. For example, a car might have additional features such as a sunroof, a heated steering
wheel, or a built-in navigation system. A smartphone might have additional features such as a high-
resolution camera, a long-lasting battery, or a water-resistant design.

Potential product

The potential product is all the changes that a company might add to its product in the future. For
example, a car company might develop self-driving cars in the future. A smartphone company might
develop smartphones that can project images onto the wall or that can translate languages in real time.

Companies need to consider all five levels of product when developing and marketing their products.
They need to make sure that their products provide the core benefit that customers are looking for.
They also need to meet the expectations of customers and to differentiate their products from the
competition. Finally, companies need to think about how they can improve their products in the future.

Functions in product decisions

Product decision functions are the tasks and activities that businesses perform to make informed
decisions about their products. These functions can be divided into two main categories:

1.Strategic product decision functions: These functions involve making long-term decisions about the
company's product portfolio, such as which products to develop, launch, and discontinue. Strategic
product decision functions include:

Product portfolio planning: Identifying the company's product portfolio objectives and developing a
plan to achieve them.
Product selection: Deciding which products to develop and launch, based on market research and the
company's strategic objectives.
Product discontinuation: Deciding which products to discontinue, based on factors such as
profitability, market share, and technological obsolescence.

2. Tactical product decision functions: These functions involve making short-term decisions about
individual products, such as pricing, promotion, and distribution. Tactical product decision functions
include:

Pricing: Setting prices for products and services.

Product promotion: Communicating the value of products and services to target customers.
Product distribution: Making products and services available to customers.
Product packaging: Designing and producing packaging for products.
Product branding: Creating and managing a brand identity for products and services.
Product mix

Product decision functions are essential for businesses of all sizes. By making informed decisions
about their products, businesses can improve their chances of success in the marketplace.

Here are some examples of how product decision functions might be used in practice:

- A consumer electronics company might use strategic product decision functions to develop a new
line of smartphones. The company would first need to identify its product portfolio objectives and

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 develop a plan to achieve them. This might involve expanding into new market segments or
developing new features for its existing products. The company would then need to select the
specific smartphones that it wants to develop and launch. This would be done based on market
research and the company's strategic objectives.
- A food and beverage company might use tactical product decision functions to promote its new
line of energy drinks. The company would need to set prices for the drinks, develop advertising
campaigns, and make the drinks available to customers through retail stores and other channels.
The company would also need to design and produce packaging for the drinks that is both
attractive and informative. Finally, the company would need to develop a brand identity for the
drinks that positions them as the best choice for active consumers.

By carefully considering all of the relevant product decision functions, businesses can make informed
decisions that lead to successful product launches and increased profitability.

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