This document provides information about product concepts in marketing. It defines product as anything that can satisfy a consumer need or want. A product includes both tangible goods and intangible services. It discusses the importance of product in the marketing mix and defines product from several perspectives. It also outlines key characteristics of products, different types of products for consumers and industries, and advantages and disadvantages of focusing solely on the product concept in marketing.
This document provides information about product concepts in marketing. It defines product as anything that can satisfy a consumer need or want. A product includes both tangible goods and intangible services. It discusses the importance of product in the marketing mix and defines product from several perspectives. It also outlines key characteristics of products, different types of products for consumers and industries, and advantages and disadvantages of focusing solely on the product concept in marketing.
This document provides information about product concepts in marketing. It defines product as anything that can satisfy a consumer need or want. A product includes both tangible goods and intangible services. It discusses the importance of product in the marketing mix and defines product from several perspectives. It also outlines key characteristics of products, different types of products for consumers and industries, and advantages and disadvantages of focusing solely on the product concept in marketing.
This document provides information about product concepts in marketing. It defines product as anything that can satisfy a consumer need or want. A product includes both tangible goods and intangible services. It discusses the importance of product in the marketing mix and defines product from several perspectives. It also outlines key characteristics of products, different types of products for consumers and industries, and advantages and disadvantages of focusing solely on the product concept in marketing.
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UNIVERSITY INSTITUTE OF LEGAL STUDIES
DEPARTMENT OF LAW BBA / B.COM Subject Name: Fundamentals of Marketing From: Assistant Prof. Ravinder Kaur
DISCOVER . LEARN . EMPOWER
PRODUCT CONCEPTS
DISCOVER . LEARN . EMPOWER
Product • Product is one of the important elements of marketing mix. A marketer can satisfy consumer needs and wants through product. • A product consists of both good and service. Decisions on all other elements of marketing mix depend on product. For example, price is set for the product; promotional efforts are directed to sell the product; and distribution network is prepared for the product. • Product is in the center of marketing programme. Therefore, product has a major role in determining overall success of marketing efforts. • A marketer tries to produce and sell such products that satisfy needs and wants of the target market. Other words used for product are good, commodity, service, article, or object. In marketing literature, product has comprehensive meaning.
DISCOVER . LEARN . EMPOWER
Definitions of Product • 1. Philip Kotler: • “Product is anything that can be offered to someone to satisfy a need or a want.”
• 2. William Stanton: • “Product is complex of tangible and intangible attributes, including packaging, colour, price, prestige, and services, that satisfy needs and wants of people.” • 3. W. Alderson: • “Product is a bundle of utilities, consisting of various product features and accompanying services.” Product can also be referred as a bundle of satisfaction, physical and psychological both. Product includes: 1. Core Product: • Core product includes basic contents, benefits, qualities, or utilities. 2. Product-related Features: • They include colour, branding, packing, labeling, and varieties. 3. Product-related Services: • They include after-sales services, installation, guarantee and warrantee, free home delivery, free repairing, and so forth. As per the definition, anything which can satisfy need and want of consumers is a product. Thus, product may be in form of physical object, person, idea, activity, or organisation that can provide any kind of services that satisfy some customer needs or wants. Product Dimensions • Managerial Dimension • Consumer Dimension • Social Dimesion Characteristics of Product • 1. Product is one of the elements of marketing mix or programme.
• 2. Different people perceive it differently. Management, society, and consumers have different expectations.
• 3. Product includes both good and service.
• 4. Marketer can actualize its goals by producing, selling, improving, and modifying the product.
• 5. Product is a base for entire marketing programme.
• 6. In marketing terminology, product means a complete product that can be sold to consumers. That means branding, labeling, colour, services, etc., constitute the product.
• 7. Product includes total offers, including main qualities, features, and services.
• 8. It includes tangible and non-tangible features or benefits.
• 9. It is a vehicle or medium to offer benefits and satisfaction to consumers.
• 10. Important lies in services rendered by the product, and not ownership of product. People buy services, and not the physical object. Types of Product Consumer Products
• i. Convenient Products – Soap, toothpaste etc.
• ii. Shopping Products – footwear, jewelry, clothes etc.
• iii. Durable products – T.V., Refrigerator, A.C., Washing Machine etc.
• iv. Non-durable products - Fruits, vegetables, flowers, cheese, milk etc.
• v. Services – Internet, transportation, medical, insurance etc.
Industrial Products
Industrial products include:
• 1. Machines and components
• 2. Raw materials and supplies
• 3. Services and consultancies
• 4. Electricity and Fuels, etc.
Product Concept of Marketing Product Concept • Product Concept states that customers or consumers prefer a product that is of the highest quality, performance, and features. The product concept is a mandatory concept in order to give the best possible product to the customer as per the demand and expectation. A product is not complete in itself and requires other factors of business like marketing, distribution, sales, service, etc. to be successful. Importance of Product Concept • Using the Product concept, a company can give identity to the product and can add functional value and usability so that the intended customers can derive this benefit and eventually buy the product in the market. • The product concept is one of the orientation strategies & marketing strategies towards the market that a company can follow. • Other being Selling Concept, Production Concept, Marketing Concept, etc. Marketing Pull is generated because of superior products which help in the success of the brand. • Innovation helps to get new products with features which customers would like. Advantages & Disadvantages of Product Concept The merits of the Product concept are : • 1. Innovation is more using Product Concept as the companies vouch to make better products leading to innovations and inventions which is good for everyone • 2. Quality is the central focus of this concept which fulfills the needs and wants of the customer at the same time • 3. It raises the overall benchmark of the offerings in the market as competitors also try to come to the same level as the innovator which tries to give the best product The drawbacks are: • 1. Leads to expensive products for basic needs as all manufacturers try to give the best possible product to the customer even though the demand can be fulfilled • 2. Customers need support, service along a product, so just focusing only on product features can lead to not providing the holistic customer experience. THANKS
