Entrepreneurship

PRODUCT AND SERVICES

that will meet the market need

Prepared by: Erica E. Macayan

 Definition of Terms:
Customer Needs is a mission-critical for business looking
to create product that truly speaks to their customer’s
problems.
The customer needs are the named and unnamed needs
your customer has when they come in contact with
your business, your competitors, or when they search
for the solutions you provide to identify the needs of your
customers at every step of your process. You can identify
customer needs in several ways, by conducting focus
groups, listening to your customers or social media, and
keyword research.
 Definition of Terms:
(a) Needs, Wants, and Demands.
Needs are a special kind of want and refer to things
we must have to survive, such as our basic needs.
While wants are desires for goods and services we
would like to have but do not need.
Demands are requests for specific products that the
buyer is willing and able to pay for over a specific
period.
 Definition of Terms:
(b) Products, Services, and Experiences.
A product is any good, service, or idea that can be
offered to a market to satisfy a want or need.
On the other side, services are the non-physical,
intangible parts of our economy, as opposed to
goods, which wan touch or handle.
Experiences are knowledge or skill in a job or
activity, which you have gained because you have
done that activity or work for a long time.
 Definition of Terms:
(c) Value and Satisfaction.
A value refers to the value customers place on a
product or service.
Satisfaction on the other hands, is the measure of
how well customer expectations from a purchased
product or service have been meet.
 Definition of Terms:
(d) Exchanges and Relationships.
Exchange is the act of obtaining desired object from
someone by offering something in return
(Armstrong et al 2009).
On another note, relationship is a connection
between two people or things.
 Definition of Terms:
(e) Markets.
Market is defined as the group of individual or
organizational customers who have both the
willingness and financial capability to purchase a
product or service.
Core Product Actual Product AugmentedProduct
is not tangible physical is the tangible, is the non-physical part of
product because this is physical product. You the product.
the benefit of the can get some use of Example when you buy a
product that is valuable car, part of it is the
it.
to you. warranty. The features of
Example the car
Example is a car, the
again, it is vehicle that augmented products can
benefit is convenience
you can test drive, be converted in to
like the ease at which
buy and collect. You benefits for individuals.
you can go where you
like, when you want to. can touch it.
 According to Use: Consumer and Industrial Goods

➢ Consumer goods that are

purchased for personal consumption
and/or for household use. Examples
of these are instant noodles, biscuits,
milk, detergent soap, shampoo and
other similar items.
➢ Industrial goods are purchased in
order to make other goods, to serve
as a raw material or input in the
production of other goods.
Examples are aluminium, wires,
electronic and cables etc.
According to Differentiation: Undifferentiated and Differentiated Goods

➢ Undifferentiated goods are products whose

physical characteristics are so identical, that it
would be difficult to distinguish one purchased
from one vendor or another. These goods are
sourced from nature like example rock salt.
➢ Differentiated Goods are varied in their
characteristics and features that make them
distinguishable from one another. Example the
Toyota Fortuner is different from Mitsubishi’s
Montero Sport which they have different designs,
headlights, body heights, hoods, ground
clearances, etc. The ability of manufacturers to
successfully distinguish their products from other
competitors is called branding.
 According to Type: Convenience, Shopping, Specialty, and
Unsought Goods
➢ Convenience goods are product
that are purchased frequently, are
usually inexpensive, and do not
require much purchase effort and
evaluation. Examples: newspapers,
gum, and candy.
➢ Shopping goods are purchased
less frequently than convenience
goods, are relatively more
expensive, require some amount of
information search and evaluation
prior to purchase. Examples are
shoes, clothes, and handbags.
 According to Type: Convenience, Shopping, Specialty, and
Unsought Goods
➢ Specialty goods are goods that
require an unusually large effort on
the part of consumers to acquire.
Examples are branded luzury, work
of art, automobiles, and homes.
➢ Unsought goods are goods that
consumers seldom actively look
for, and are usually purchased for
extraordinary reasons. Examples are
investments, memorial plans, and life
insurance.
According to Durability: Consumable, Semi-Durable, and Durable Goods

➢ Consumable is a product whose

benefit can only be used by a consumer
for a short period of time, sometimes
only a few minutes or may last a few
days. Examples are soap, perfume, lotion,
etc.
➢ Semi-consumables provide benefits to
the consumer for a longer period of time,
usually spanning several months.
Examples are clothes, shoes, belts,
jackets, etc.
➢ Durables are products that are
manufactured to last a long time.
 Identifying Customer Needs
1. Correctly identifying customer’s needs is essential for ensuring customer
satisfaction and loyalty.
2. Customers have unique needs.
3. Identifying customer’s needs allows representatives to cross-sell related
products or services.
4. Often, customers either aren’t clear about what they need or they don’t
really know what they want.
5. Identifying client’s needs creates satisfied customers, and satisfied
customers are less likely to have reason to enter into disputes with your
organization or contemplate legal action
 Four-step procedure to meet the needs of customers

1. Identify what your customers need from you through keyword

research, focus groups, or social listening.
2. Distribute the information to relevant stakeholders in your
organization.
3. Craft product features or create content that speaks to your
customer’s needs.
4. Collect customer feedback on how your efforts meet their
expectations.
 Key Points
1. To ensure customer satisfaction, you must correctly identify
customer’s needs.
2. To identify needs, you must both listen and ask the right
questions.
3. After identifying needs, always check for additional or related
needs.
4. Use your knowledge and experience to identify and present the
right products, services, and solutions to meet your customers’
needs.
Thank You
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