MKT week 6 What is product? - Everything, both favourable and unfavourable, that a person receives in an exchange - Anythign that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need Includes: - Tangible goods - things you can pick up - Intangible things - done by or for the consumer (services, experiences, events, peoples, places) Products usually include both tangible and intangible The product continuum - Products contain both tangible and intangible components GOODS Salt Shoes VCR Automobile Fast Food Cruise Consulting Insurance Education IDEAL SERVICES Tangible Dominant - Intangible Dominant ' your appearance is the first thing you say to someone' Conceptualising a product: The Three level theory Core customer value Actual product Augmented product Augmented product Delivery and credit Actual product Brand name Features Core customer value Quality level Design After sale service Product support Packaging Warranty
Core Product · The problem solving core benefits that customers are buying when they obtain a producyt - Eg people go to a hardware store to buy drilling devices, but what they really want is a hole - 'in the factory we make cosmetics, in the store we sell hope' - Emotional need Actual product · A product's parts, styling, brand name and packaging, which combine to deliver the core product benefits · Brand name, quality, styling, features and packaging Augmented products . Additional customer service and benefits that add value for the consumerfi They are things uilt around the core and actual products and support these offering · Eg warranty, after sales service, delivery, credit options, installation Value proposition framework . It is ideal to be unique, but if not then at least: Price More The same Less ning ons. More More for for the more More same More for less Benefits The same The same for less ng ons Less Less for much less However the value proposition must support a viable business modelfi Consumer product - Products that are bought to satisfy an individuals personal wants Industrial product - A product used to manufacture other goods or services to facilitate organisations operations or to resell to other consumers
Types of consumer products - Important to understand what type of product you are marketing because this will guide you marketing mix decisions ; important to lerstand what Type of duct you are rketing because this guide your rketing Mix decisions. Products Consumer products Business products onvenience products Shopping products Specialty products Unsought products Convenience products · Product consumer usually buys frequently immediately and with minimum comparison and buying effortfi Staples and impulse emergency products (newspaper, milk and bread) Shopping products · A product that requires comparison shopping because it is usually more expensive and found in fewer stores (cars, furniture) Specialty products · A particular item for which consumers search extensively and wont' accept substitutes (medical services, designer clothes) Unsought products · A product unknown to the potentials buyer or a known product that the buyer does not