A good, service, person, place,event or organization offered to consumers to satisfy his need or want.
Thinkof products that have changed our lives in a big way
A good is a tangible product, which can be seen and touch. These tangible items can be produced in bulk and inventoried. ForExample, Switches from Bajaj Electricals are goods.
A service is an intangible product, which requires simultaneous consumption and production. These are also perishable in nature. For example, A Wockhard hospital offers heart surgery, which consumers can not see but need to undergo when there is a problem in the heart. Hence surgery a service.
A product may be person also. Here marketer tries to buy and sell the celebrities or sports persons of a league or club etc… For, example, Board of cricket control in India (BCCI) asks its Indian premier league (IPL) teams to buy Iconic players and foreign players for certain price.
Anevent is also considered as product. Many event management companies earn their revenue by selling tickets and advertisement space at the event. Thefollowing example explains how an event can be marketed.
Anorganization is also considered as a product. It can be bought and sold on the basis of value of the firm. Example Tata’s bought Tetley for £271mn on 27 th February 2000
Many state governments and central governments sell their places to get the pie in the tourism market. Here governments provides advertisements of a place to attract tourists from India and abroad. For example, Karnataka government under ‘one state many world’ campaign highlighted historical places, wildlife, waterfalls etc... In the following advertisement it provides the inputs on Hampi to tourists, a historical place in Karnataka.
1. Core product: This is the fundamental goods or service offered to the consumer. E.g. Hospital services2. Generic product: This is the basic version of the product. E.g. Hospital having doctors, nurses, beds and laboratories.3. Expected product: The minimum attributes consumer expects in the product. E.g. Hospital should have qualified doctors, good service and proper amenities.
4. Augmented product: Inclusion of value added services to the expected product to distinguish it from competitors. E.g. Online or tele medicine facilities, expert knowledge sharing, 24 hour ambulance service etc...5. Potential product: these are future products provided by the company which customer didn’t anticipate. Ultimately consumer will be delighted by this product. E.g. Medical insurance from the hospital, after service care etc…
Another example ?Imagine yourself as a Product managerWhat steps in product augmentationshould be undertaken for competitiveadvantage.
Durability and Tangibility Classification: Nondurable goods Durable goods Services
Products are classified on basis of use into two broad categories. They are consumer products and business products.1. Consumer products are purchased by the consumer for his personal consumption.2. Business products: These products are purchased by business concern for further product development
As these products are purchased by the final consumer for his own consumption, the market is very big. Hence consumer products are classified into four different categories.They are -a. Convenience goods.b. Shopping goodsc. Specialty goodsd. Unsought goods.
The fast moving consumer goods, which are purchased regularly with less amount of effort.1. These are purchased frequently.2. Customer involvement is very low.3. Price of the product is very low.4. Intensive distribution is used to reach the consumer.5. The stock turnover is high.6. Aggressive promotion is requiredExample: soaps and detergents.
High consumer involvement products in whichconsumer process the information of productsuitability, quality and price.Comparing with convenience goods, shopping goodsare purchased less frequently. Consumer takeslot of time to search and evaluate the information.These products are available in selected outlets.The price of the product is very high.For example, a consumer want to purchase washingmachine will collect the information on type ofwashing machine, type of control, loading, washmethod, pre wash, delicate wash, cycle time, aftersales service, sensors and water consumption.
A tangible product for which a consumer posses high brand loyalty and ready to wait, or spend time.i. Consumers are having strong brand loyalty.ii. Usually companies adopt premium pricing strategy.iii. Exclusive distribution and selective communication strategies are adopted. To illustrate, a consumer is willing to pay Rs 32000 for Bose Digital home theater though competitors’ products are available at Rs 15,000 to Rs 25000.
These products are called unsought because consumer usually unaware or ignorant to purchase. Marketers need heavy promotion activities to educate and sell their products.Insurance is the product which most of the consumer are aware but very few are willing to purchase.Life Insurance Corporation trains its agents to promote and sell aggressively. These agents provide lot of inputs regarding insurance to consumers.
Business products are purchased by the business consumer who uses this product as a material, part, capital item or service in producing his/her final product.For example, CET offers range of services to Birla copper, Jindal Vijayanagar steel and Mukund limited. These services are used to develop the final products of these companies.
Centre for Engineering & TechnologyCenter for Engineering & Technology (CET), an ISO: 9001 certifiedorganization is the design,engineering & consultancy unit of SAIL. It hasits Head Office at Ranchi, Sub Centers atBhilai,Durgapur, Rourkela, Bokaro, Burnpur & Bhadravati, Unit Officesat Bangalore, and New Delhi for formulation of Interplant Standards forSteel Industry. As a solution provider for all project needs, CET hadbeen rendering complete range of services not only to the Steel Plantsunder SAIL but also to various clients other than SAIL – both within andoutside the country. Some of the important clients other than SAILinclude EGITALEC (Egypt), Ashok Steel (Nepal), Chittagong SteelMills(Bangladesh), Birla Copper, Mukand Ltd., Jindal Vijayanagar SteelsLtd., National Iron & Steel Co.,Hindustan Zinc Ltd., National Mineral Development Corporation andRomelt SAIL(India) Ltd.,CET is also the nodal agency for acquisition andlateral transfer of technologies within SAIL plants.The range of services includes conceptualization, project evaluation &appraisal, project consultancy, design & engineering and projectmanagement in the areas of iron and steel making.Apart from this, CET has been providing its services in the related areaslike mine planning and development, infrastructuredevelopment, industrial piping, industrial warehousing, material
The different stages in the product and their attributes are listed below1. Need family : The core need that underlies the product family. Eg. security2. Product family : All the product classes that can satisfy a core need with reasonable effectiveness. Eg. savings and income3. Product class : A group of products within the product family recognized as having a certain functional coherence Eg. Financial instruments
4.Product line : A group of products within a product class that are closely related because they function in a similar manner or are sold to the same customer groups or are marketed through the same types of outlets or fall within given price ranges. Eg. Life insurance5. Product type : Those items within a product line that share one of several possible forms of the products. Eg. Term Life insurance
6. Brand : The name associated with one or more items in the product line that is used to identify the source or character of the item Eg. ICICI7. Item : A distinct unit within a brand or product line that is distinguishable by size, price, appearance, or some other attribute. Eg. ICICI Pru life(Adopted from Kotler Philip, Marketing Management)
Inplanning its market offering the marketer needs to think through the levels of the product