- products are tangible whereas services are intangible....
- products can be bought ,services can be felt....
- products are countable, services are not countable....
- products can be owned.. but service cannot be owned......
- product is produced by a manufacturing process. A service is offered by the utility element of companies or any other institution.
KINDS OF SERVICE:
- Indirect service - includes cleaning up the community,serving food, building playgrounds for younger children,raising money for a worthwhile cause.
- Direct service - includes working with or teaching other people, including teaching classes to younger students and reading to the elderly.
- Advocacy service - includes creating social change through government or grassroots action. Students may work to change laws and regulations or inform politicians and community members about pertinent issues.
KINDS OF PRODUCTS:
- Convenience product: A relatively inexpensive item that merits little shopping effort
- Shopping product: that requires comparison shopping, because it is usually more expensive and found in fewer stores.
- Specialty product: A particular item that consumers search extensively for and reluctant to accept substitutes.
- Unsought products: unknown to potential buyer or a known product that the buyer does not actively seek.
WHAT IS A PRODUCT MIX?
- is a combination of products manufactured or traded by the same business house to reinforce their presence in the market, increase market share and increase the turnover for more profitability.
- generally defined as the total composite of products offered by a particular organization, consists of both product lines and individual products
- Product mix is also referred to as sales mix.
WHAT IS MARKET POSITIONING?
- is the manipulation of a brand or family of brands to create a positive perception in the eyes of the public. Its objective is to occupy a clear, unique, and advantageous position in the consumer's mind. If a product is well positioned, it will have strong sales, and it may become the go-to brand for people who need that particular product. Poor positioning, on the other hand, can lead to bad sales and a dubious reputation.
WHAT ARE THE DIFFERENT PRODUCT COMPONENTS?
- CORE BENEFITS - the core product itself is the benefit the customer receives from using the product.
- Actual Product - The core benefits are offered through the components that make up the actual product the customer purchases. Within the actual product is the consumable product, which can be viewed as the main good, service or idea the customer is buying.
- Augmented Product -
- Guarantee – This provides a level of assurance that the product will perform up to expectations
- Warranty – This offers customers a level of protection that often extends past the guarantee period to cover repair or replacement of certain product components.
- Customer Service – This consists of additional services that support the customer’s needs including offering training and assistance via telephone or online.
- Complementary Products – The value of some product purchases can be enhanced with add-on products, such as items that make the main product easier to use (e.g., laptop carrybag), enhance styling (e.g., cellphone face plates) or extend functionality (e.g., portable keyboard for PDAs).
- Accessibility – How customers obtain the product can affect its perceived value depending on such considerations as how easy it is to obtain (e.g., stocked at nearby store, delivered directly to office), the speed at which it can be obtained, and the likelihood it will be available when needed.
