The Product hich the company attempt, hie product is the only el b ix that the company cannot do without. Thi, Jain why this is $0. the vehicles by cts are ‘ accomplish its objectives. As it is, in the marketing m chapter is an attempt to exp Whats a Product A product is anything to satisfy their wants and needs. Products may following forms: 1. aphysical object like a toy or a kilo of pork; 2. aservice like a ferris wheel ride or a dental check-up; 3. aplace like London or Boracay; 4. an organization like the Knights of Columbus or the Philippine Marketing Association; 5, ides Tike, “sie uae? sue : - g cet pro-life” or “the Preservation of the ozone 6. apersonality like Evita Peron or Efren “Bata” Reyes. a maintain the interest of buyers, the Physical rod: ~ often provided ava benefits like: (1) quality; (2) eB cts a the product (6) ca. sc kaBine: (4) credit; (5) inform petation of luct; (6) warranty; (7) after sales Service; and) on about With the foregoing statements, every more specifically, as follows; oe man “A product is anything offered for kK A a sale by i to satisfy their ph i i ze ma tisfy o Physical, social, symbolic, and Paychoton buyers needs. Wants offered for sale by a firm to buyers take any of the Classification of Products Products may be classified i . goods; and (2) in, Patek ie ot into two categories; (1) & "SumerConsumer Goods Consumer goods are those intended for final consumption by consumers. They may be classified according to: (1) the rate of consumption and tangibility; and (2) the consumer’s shopping ’ habits. _Rate of Consumption and Tangibility. Based on the rate of consumption and tangibility, consumer goods are further classified as: (1) durables; (2) nondurables; and (3) services. Durable goods are tangible goods which normally survive many uses. Examples are motorbikes, refrigerators, and filing cabinets. -Noridurable goods are tangible products which are consumed in one or a few uses. Examples are ice cream, blank CD, toothpicks, and petrol. _Services are intangible goods like activities, benefits, or satisfactions which are offered for sale. Examples are entertainment in movie houses and concerts, transport services, tailoring services, and haircuts, eee Shopping Habits. Based on consumer's shopping habits, consumer goods may be further classified as: (1) convenience goods; (2) shopping goods; (3) specialty goods; and (4) unsought goods. Convenience goods are those which are purchased with a minimum of effort. Many of them are readily available in many retail outlets. Examples are soap, bread, soft drinks, and milk. _-snopping goods are those that are bought only after an effort to with other goods is made. Examples are radio sets, ready- to-wear suits, cellphones, and shoes. = f goods are those that the consumers seek to buy and they are‘not willing or they are not able to accept substitutes, are jewelry, and exotic foods like turtle eggs. use no effort to seek them. There goods: () the new unsought goods, and @) eei ideas or products sought goods are really new I the ee stil Sart to be motivated to buy. An ean is the papaya soap when it was first introduced. Consumers dig be know much about it, so it was not sought. Regular unsought goods are those that stay unsought but unbought forever. Examples are encyclopedias, educational Plans, I plans, and life insurance plans. | Goods Industrial goods are those used in goods. They are categorized as follows: 1. _ installations accessory equipment raw materials component parts and materials supplies the production of othe Ce services ~Anstallations. This term refers to industrial ucts. with Jong life, are generally expensive, and they ease erste capital equipment of an industrial firm. Examples are buildings, generators, computers, elevators, and others.dresses, and flour into bread, by tires mounted in motor car television. Component Parts are exemplified 8, strings in a violin, and knobs on Applies. These are items that are us ids i i ed as aids in the operatin, process but do not become Part of the finished product. ere the examples are pencils, ink, paper clips, fasteners, and others. Ss — These are expense items that assist in the operations. AI ne examples are maintenance services for general housekeeping, security services, and consultancy services. The Product as a More Useful Variables The product is one of the variables in the marketing mix and it can be unique so it will be more attractive to buyers. When the marketer does it, he is making his product different from the others. The purpose of product differentiation is not only to satisfy customers and make more profits but to beat the competition. In product differentiation, the following tools are considered: branding quality image product features packaging location Dae wn 7, promotion innovation i ® different service levelssome or the product di; : ‘ ifferentiati : this ean ie the others like isu tools will be discussed in presented in other chapters, ation and promotion will be pranding One aspect vooesk be A ate job of the marketer is to make sure that the p pie SESE EE hie Will provide real satisfaction to the buyers. A aie nn k 8 job is to make it easy, later on, for the satisfied cus ie out his product from among a wide assortment of other goods. Most often, this is achieved through “branding”. Branding is that marketin; ich identi : n g action which identifies and hel; differentiate the goods or services of one seller from those of pari aa who uses a preset and begins to like it, will find less ifficulty in purchasing the luct again if he is provided with brand to remember. i en ia Brand A brand is a name, term, sign, symbol, or design, or a combination of these elements, that is intended to identify the goods or services of one seller or a group of sellers. Brand may either be: (1) legally registered; or (2) not legally registered. Legally registered brands are provided with legal protection called trademark. Brands, whether legally registered or not, consists of two distinct parts: (1) brand name; and (2) brand mark. Brand Name. This term refers to that part of abrand consisting of words, letters, and/or numbers that can be vocalized. Examples are Suzuki, UST, Tide, and Hundred Islands. Brand Mark, This refers to that part of a brand that appears in the form of a symbol, design. OF distinctive coloring or lettering, and which can not be yocalized. Examples are the three flowers appearing in a Carnation milk product label, and the pictorial presentation of a boy appearing in Dutch Boy paint labels. Licensing as an Alternative ; There are times when a company is notin a position to engage in developing its own brand. In this case, licensing offers an alternative option. ‘ +942 Raabea ewe se ee ee ee] , , a licensing agreement, the firm which owns or | ee allows anette firm to use the brand in exchange torre j or some other form of payment. Licensing offers much flex" because the licensee is not barred from using other Options me needed. | Figure 22 Brand and Trademark, Criteria for a Good Brand As brands serve to facilitate the purchasin, f > Must be made to assure that the brand selected $e SU, effort Among the desirable qualities of a good brand are the fll 1061. Itshould suggest something about the product's benefits and qualities. Examples are Great Taste, Close Up, and Coloroof. 2. It should be easy to pronounce, recognize, spell, and remember. Examples are Ligo, Milo, and Alaska. 3. It should be distinctive. Examples are Minola, Condura, and Cortal. 4. It must be adaptable to additional product lines. For example, the Hitachi brand has been adapted by several Hitachi products like TVs, electric fans, and refrigerators. 5. It must be capable of being legally registered. Names that sound like an already registered name is no longer acceptable for copyright registration. An example is Cafe Mate which infringes on Coffee Mate. When to Adapt a Brand Although branding may be helpful to the marketer, it is not always the case. There are instances when products need not be branded. Examples are salt, straw, clothes hangers, pan de sal, nails, lumber, and vegetables. Some of the conditions favorable to branding are the following: 1. The demand for the general product class which the product or service under consideration belongs should be large. An example is the cell phone. 2. The demand should be strong enough so that the market price can be high enough to make the effort profitable. Cell phones and stereo systems are good examples of products with strong demand. 3. There should be economies of scale. When serving the demand, there is an indication that cost decreases as more units are sold. This condition is favorable for branding. 4. The product quality should be the best for the price, and | the quality should be easy to maintain, '5.. The brand or trademark should make it easy for the product to be identified. “eThe buyers must be convinced that they could use rh product as long as they want. 7. Favorable shelf location or display space in stores my be available for retailing activities. E 6. Availability of the productis dependable and widespy,. [ e Branding Strategies When branding products or services, firms have Severaj options. These are: 1. manufacturer branding; 2. _ reseller branding; 3. mixed branding; and 4. generic branding. Manufacturer branding is a branding strategy in which the brand name for a product is designated by the manufacturer. Two alternative approaches are available: (1) multiproduct approach; or (2) multibrand approach. The multiproduct approach, also referred to as blanket or family branding strategy, uses the same brand name to cover a group of products. This approach offers the following advantages: 1. Buyers who have a Positive experience with the product will extend this favorable attitude to other products with the same brand. 2. The level of brand awarenes: rate of advertising costs. s is raised and can reduce therer and to th Ne ‘ frotdize th mixed branded product, ‘0 the reseller will patronize the Generic branding isa branding strategy which lists no product name, only a description of contents. This approach is applicable to rice, salt, sugar, and charcoal. BRANDING STRATEGIES also private branding or private labeling Figure 23 Branding Strategies Soe ee eePackaging Packaging refers roducing, Frappe is the package- of material briefly descr 1. es involved in designing ai for a product. The container o, clude up to three level, to all activiti jner or wrapper of the contain the package may in bed as follows: ich i duct’s immediat . kai e which is the pro wealate wre ener The: 270m can containing Carnation milk is it, primary package. . i tects the primary dary package which pro! nae The carton box containing two dozens of Carnation milk cans is its secondary package. The shipping package which contains the secondary package or packages. It provides ease of storage, identification, and shipping. Reasons for Packaging There are several reasons for packaging products. Among them are: 1. It provides protection to products before and after they are in the possession of the intended users. Products need to be protected from the harmful effects of outside elements. Packaging serves to eliminate this problem. It provides convenience to the user. Man ¢ ; ty products are now neatly packaged which provide convenience for use just anywhere. The effort exerted from date of Purchase to actual use of the product ig greatly diminished. It provides safety, Products like i ici 0 insecticides considerable harm unless they are contained heme It provides economy to bo ; th the seller and Wye paisetent quantity tequirements for Products, s wi " more ina single purchase, while some wi ill ome less. In. any case, Purchasing in various quantities need possible by Packaging. ties is ma, de It allows sellers to effectivel : 'Y promote the : package can be’ made to attract the atten gate the user, Buyersprospective buyer and further provide vital information about the product, Children are oftentimes attracted by fancy candy wrappers which motivate them to buy the product. Examples of packaging that helps in promoting the company’s products are reusable containers, “commemorative” and resealable bottles. What Makes a Good Package Packages must be made to assist in the marketing effort. Defective packaging may contribute to lost sales and product damage. Too much packaging, on the other hand, may be costly and will eat up profits. Labeling That part of the product which provides information about the product and the manufacturer is called the label. It may be a part of the package, or a tag attached to the product. Types of Labels There are four types of labels: 1. The brand label. This label identifies the product or brand. An example is the word “Goodyear” indicated in some tires sold by dealers. 2. The descriptive label. This label provides information about the product: who made it, where and when it was made, its contents, how it is used, and how to use it safely. 3. The grade label. This label identifies the product's judged quality with a letter, number, or word like “grade A” “grade 3", or “premium grade.” 4. The tional label, This label provides attractive graphics to help promote the product. One of the ae Sunpenents shat gies + to patronize a produ warranty, which is re. ~ explaining what the seller promises about the product. Itisechait nte as to the extent of the repaiy 1 itten promis! . a manufacturer’s wrt P sation for defective goods. replacement, or otherwise compen: Variations of Warranty ; Warranties may either be: (1) express; or (2) implied. Express warranties are written statements of a manufacturer's liabilities for product deficiencies. Express warranties may be: (1) limited-coverage warranty; or (2) full warranty. A limited-coverage warranty is a manufacturer’s statement indicating the bounds of coverage and noncoverage of any deficiency found in the product. A full warranty is a statement of liability by a manufacturer that has no limits of noncoverage. Implied warranties are those that assign responsibility for aoe deficiencies to a manufacturer even if the item was sold by a er. Warranties of whatever variation help the consi is purchasing decision. 3 cia Product Life Cycles PLC isthe period between the birth and death ofa pests The PLC consists of four distinct stages: (4) ; tbat : growth; (3) maturity; and (4) decline, Theses aa . iQ) manifestations of the effects of various forces affecting | potually the namely: (1) consumer demand; (2) competition; ang Sout cycle, rulings. These forces are beyond the control of the ¢¢ovemment . influence of its marketing efforts, pee he” The slow sales growth is attributed to the following: 1. delays in the expansion of production capacity; 2. technical product problems that have to be work ed out, 3. _ difficulty in gaining widespread distributions; and 4. inertia on the part of consumer in trying the ney product. Heavy promotional expenditures are attributed to: 1. heavy sales costs involved in obtaining distribution; and 2. the need for heavy advertising to create consumer : awareness and trial. : High prices are caused by: 1. the need to recover investment costs in plant and equipment; and 2. low volume of sales. Limited product offerings are caused by insufficiency of initial sales volume to justify variations in the product. The Growth Stage The growth stage in the PLC follows a successful introduction stage. The growth stage is characterized by the following: 1. Sales start climbing rapidly as distribution increases and the consumers are persuaded to try the Product. 2. . The ratio of promotional expenditures to saleg decreases. This is due to the rapid increase in sales but Without a corresponding increase in promotional expenses, 3. Prices tend to remain high except when demand stimulation is required and entry of S°™MPetitors is discouraged. 4. _ New forms of the product appear, like new coy, ‘Ors, models, and new sizes, 3 ssidqhe Maturity Stage When the growth in sales slows down, the maturity stage pegins tO take over. This stage is characterized further by the following: 1, _ sales settle down as the product becomes well-known; 2. _ price reductions are used as a tool of competition; 3. competition is intensified; and 4, the market becomes saturated. The Decline Stage The decline stage begins with a permanent drop in sales. The stage is further characterized by: 1. a pruning of product models and variations to eliminate those not producing profit; 2. promotional-expenses are reduced; and 3. _ plans for phasing out the product is made. The Importance of the Product Life Cycle Concept The concept of the PLC is important to the marketer in the sense that it provides him witha guide in adapting appropriate marketing strategies. The marketing action required in the introduction stage, for instance, will be much different than what is required in the growth stage. Knowledge of the PLC concept may be useful in many aspects of decision-making in marketing. For example, it can be used as a basis for harvesting reasonable earnings from weak products. Suffice it to say that the PLC concept may be used extensively to assist the marketer in achieving his marketing goals. The most im tant elements of the marketing mix is the ehaanee Re aly products take forms different from one another. ical products are often provided with benefits like qual ; ed of the manufacturer, packaging, credit, information E the product warranty, after sales service, and delivery,