Product and Services: Understanding Product Concept, Attributes, and Market Classification, Apuntes de Industria y Comercio

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Chapter

Product & Services Policies

INTRODUCTION:

PRODUCT & SERVICE

Product &

Services Policies

Chapter 1: Introduction. Product & Service

1.1. Market and Marketing actions. The Market and its environment. Types of Markets. 1.2. Product Concept & Features. 1.3. Product as a set of attributes. 1.4. Phisic and phsycological Product attributes. Features and differences. Aditionals elements of the Product: packaging, warranties, etc. 1.5. Product Classifications. Consumer Produtcs & Industrials Products 1.6. Products Range and Line. 1.7. Concept of Total Product.

The Enterprise should analyse the Environment because it´s the place in which are going to carry out the MARKETING ACTIONS.

The Market and its environment

1.THE MARKET AND MARKETING ACTIONS.

Inside the Market we´ll find Providers and Consumers ,

whose are the final goals of all our Products/Services

offer.

Enterprises should design all their products acordingly

to the Market needs, fixing the prices, select the

accurate distribution channels and making

communication activities always thinking of the

Consumers they are trying to atract.

The ENVIROMMENT is the set of “not controlable” factors (earthquake??) that

can affect to the Market behaviours, to the Marketing strategies of the Company,

and, actually, they determine the interchange relationship.

The Environment can be splitted in microenvironment and macroenvironment

THE MARKET AND ITS ENVIRONMENT

Market and its Environment

The environment can be splitted in microenvironment and macroenvironment

THE MARKETS AND ITS ENVIRONMENT

Market and its environment

2. MARKETS CLASSIFICATION

Classification Criteria Denomination

BY THE TYPE OF PRODUCT 1. Products Markets (tangibles goods)

2. Services Markets (intangibles godos)

BY THE TYPE OF CUSTOMER 1. Consumption Markets

2. Industrial Clients Markets

BY THE GEOGRAPHIC RANGE 1. Local Market

2. Regional Market

3. National Market

4. International Markets

BY THE PRODUCT NOVELTY 1. First Hand Products Markets

2. Second Hand Products Markets

Types of Markets, according to different classification criteria

The most used and operative is the combination of the two firsts : Type of Product + Type of Customer

Market and its environment

2.2 Industrial Markets

Those markets composed of a set of people or companies that adquire good or services

to use them, either to manufacture another goods/services or resell them or rent them

or for maintining their own Business.

In the buying decisions of these types of products, are predominant the objectives

reasons.

Sample:

Textil Market for home is clearly consumption market, where affects colours, design, fashion, Brand image and point of sale. A product “likes” or atract more than others at the time to buy it. Industrial Textil Market (i.e: working clothes) is adquired considering prices, durability, easy to clean, safety rules , quantity discounts,etc; so are prefered the objective reasons in the buying decision.

Market and its Environment

2.3 Services Market

Those markets that make intangible nature goods transactions. Considering Services

Marketing , these will have some features that will differentiate them from the rest of

tangible products.

Market and its environment

Product Concept and Features

"Product, is any Good or Service that can satisfy,

at least partially, the consumer´s wishes or

needs"

PSHICOLOGICAL THEORY OF THE PRODUCT:

“We don´t buy products, but what these products can do for us". Sometimes a consumer doesn´t adquire a luxury car for mobility reasons, but for other factors related to image and prestige that product can supply. If we buy a computer What are we adquiring?. A box, a display, a keyboard? Or a product that is able to help us in our work, acelerating processses/tasks? Or an article to play? So, the Concept of Product is no so simple and it is necessary a serious analysis for its comprehension.

https://www.youtube.com/watch?v=7HvYUlH4mkA

Product Concept and Features

The product actually is a mixture of tangibles+intangibles issues, as a hard+soft relation, a “phisical thing” plus all their possible “aplications” and the “benefits” that you can obtain from both.

The product levels are: The basic product is what the product does as the product, as it is, without modifications. The expected product is the product with all its attributes. The increased product is the one with all the added benefits that the company offers. The potential product is the one that can be developed through the expertise in the sales of the increased product.

Product Concept & Features

THE INCREASED PRODUCT

The Package, brand recognition, a good financing, post sales service, warranty, the delivery system and the installation,… are

some samples of components called by Kotler as increased

product. It´s all that surrounds the product and supplies value

for the consumer.

The increased product makes differences in time for customer´s decision. Being similar prices, a product with a slogan “ if you are not happy, we give your money back”, or “think different”, it´s not the same than other product saying “we don´t accept money reimbursment” or “the best microprocessor of the world”. The Customer goes to the supplier that offers better conditions and buys it to him.

Product Concept and Features

EXAMPLE:

A famous violinist was playing in an underground station as an anonymous “street musician”. People ignored him, no matter his quality, only recognised for a women that konws him and was impressed to see him there!!!

In a TV programm, the responsibles decide to include in an Art Fair a picture painted for a kid, mixed with the others pictures. When they ask to the visitors to the Fair for the opinion about this picture, they say it´s great picture and even comment about “existencial anxiety of the author”

Why has happened this? Simply because Consumer´s Perception about the Product and its environment, the Increased Product. An excelent product ( the violinist) has not been recognised becasue its “packaging” was not accurate (tube station instead a music Auditorium). A mediocre product ( two years old kid´s picture) is overvalued, because it´s in an environment to be supposed that has first line pictures.

http://www.youtube.com/watch?v=Pj4MVtoNWZc

Product as a set of Attributes

The set of features not only related to technical data/price, are the Product Attributes.

Therefore, we could defined PRODUCT, as a set

of features and tangibles/intangibles attributes,

that the Consumer considers from an specific

good to satisfy his needs/wishes.

1. PRODUCT AS A SET OF ATTRIBUTES

A TV is nothing, except if it can transmit images and audio to be understood for the Consumer

The products are not purchased as

themselves, but the solutions they get

Nutrition´s need can be satisfied for different foods.

Different Products can get solutions for

a similar problem

A Radio Car can tune programms, automatic frequency tunning, memorise them, change the volume, distribute the sound, ect.

Each product is a set of attributes

Glass lens can use for optical, produce heat o ilumination effects for decoration.

Same product can respond to different

needs

Product as a set of Attributes