Product-

CHARACTERISTICS OF SERVICES
Product Planning- is a systematic decision-  Intangibility- Services cannot be
making relating to the totality in the displayed, stored, packaged or
development and management of a firm’s inspected before buying. The
product, including its credibility of the service provided
most of the time counts.
branding and packaging. It should pinpoint  Perishability- Services cannot be
opportunities, develop appropriate stored for future sale. The skills of
marketing programs, coordinate a mix of the provider must enhance and
products, maintain successful products, develop to better serve the
upgrade faltering products, and customer.
remove undesirable products.  Inseparability- Service provider and
• Features are the attributes of the product services cannot be separated. It
which includes characteristics and its cannot accomplish the purpose if
uniqueness. one is Missing.
• Function are the uses of the products and  Variability- Service is difficult to
its contribution for customer satisfaction. standardize because it varies upon
• Benefits are the positive effect that the the performance of the provider.
product will going to give the customers
after buying the product. CONSUMER PRODUCTS- Goods and
A product is anything that can be offered services destined or produced for
for satisfaction it may be an idea, a physical the final consumer for personal,
entity (a good), a service, or family, or household use.
combination of the three.
-Product is that bundle of Classification of Consumer Products
satisfaction which the buyer receives as the -CONVENIENCE PRODUCTS
result of a lease or purchase. It includes the purchased frequently with minimum
physical good or service itself (its form, effort because products
taste, smell, color, texture), the function are available anywhere and anytime
of the product in use, the package, the
label, the warranty, the manufacturers’ and -SHOPPING PRODUCTS
the retailer’s services. purchased with exerted effort and
time. Comparison of price,
design, durability, color, etc.
• Tangible Products are basic physical or
appearance, it can be a service or an idea -SPECIALTY PRODUCTS
having precise specifications and is offered purchased with much effort.
under a given or specified description or Consumers buy their preferred
model number. brands.
• Augmented Product includes the image
and service features of a certain entity. It -UNSOUGHT PRODUCTS
gives emphasis on the intangible benefits goods are available in the market
that the customer will be getting from but consumers are not
buying the product. aware of.
• Generic product focuses on what a
product means to the CONVENIENCE PRODUCTS
consumer, not the seller. This will signify - STAPLES -regular consumption
the purpose of its - IMPULSE PRODUCTS -unplanned
existence and the primary objective in purchased
creating the product. - EMERGENCY -out of emergency
needs
Types of products
GOODS- Durable Goods CLASSIFICATION OF IMPULSE
Non-Durable Goods PRODUCTS
SERVICES- Rented Goods Service
Owned Goods Service -Pure (escape buying out of normal
Non-Good Service or everyday routine)
 -Reminder -previous and past distribution, and the product
experience remembered promotion to be used.
-Suggestion -an item seen, analyzed 5. Business Analysis – SWOT
and evaluated for the first time Analysis- Analysis of the general
-Planned -purchased based on a sale situation of a company. This is
offer making company assessment by
accomplishing what is called the
SHOPPING PRODUCTS Strengths Weaknesses,
Opportunities, Threats (SWOT)
- ATTRIBUTE-BASED SHOPPING Analysis. Doing this type of
PRODUCTS- Customers get evaluation will help the company
information and evaluate product to fully understand what is has to
features, performance, options, offer against what it needs to
warranties, etc. enhance. Business analysis also
involves the assessment of the
- PRICE-BASED SHOPPING costs, sales, and profit for
PRODUCTS- Customers judge developing new products. Once
product attributes to be the same the management is assured that
and look around for the least all investments will satisfy the
expensive item. objectives set for the company, it
can already proceed to the
STEPS IN PRODUCT DEVELOPMENT product. Development stage.
6. BUDGET – Capital- The main
1. IDEA GENERATION Brainstorming consideration of any product
The best thing to do during the development is the capital
this phase is to obtain as much involved in the process. All aspects
information as set by the group, of product development, including
avoiding idea evaluation or product distribution and
screening at this stage. promotion, involves budget.
2. IDEA SCREENING – Idea 7. PRODUCT DEVELOPMENT
Evaluation- The objective is to This is the stage where actual
eliminate poor or weak ideas. product production of the product
Companies must choose the most is done.
feasible idea, taking into 8. TEST MARKETING- Majority of
consideration the company’s companies produce and distribute
resources. products to selected geographical
3. PRODUCT CONCEPT location only. This is done in order
DEVELOPMENTS AND for the company to know product
CONCEPT TESTING – Idea is acceptability of the market before
concretized (give going to full commercialization.
specific or definite form to.) However, if the company is very
After the product concept confident about it's new product,
development is the concept it may provide little or no test
testing. In this stage of marketing at all.
new product development, the 9. FULL COMMERCIALIZATION
product concept is tested to The company is now ready to face its
groups of target competitors with great hope that the
audience or market so as to new product can provide not only
determine if the concept has profits on its part, but also satisfaction
indeed an excellent consumer of the needs and wants of its potential
appeal. market.
4. Market Strategy – Game plans Importance of Product Life Cycle
This involves different game plans
of the company in relation to the 1. Companies will have enough time
product it intends to produce. to think of possible product
Marketing strategy consists of the replacement it enhancement for those
strategy for the new product, it's product that have reached the
price, the strategy on product decline stage.
2. Companies will continuously think enterprise Can be registered as brand
of a strategy to better serve its names. There are legal requirements
market and prevent a product to as well.
advance toward the decline stage.
• Another consideration in choosing a
3. Companies will become aware that brand name is the possibility of
sales and profit differ in various product expansion.
stages.
PACKAGING-
4. Various departments in the Packaging refers to the process of
company need to be made aware of making the wrapper, covering,
the location of the companies' or container of a product or the
product/s in the PLC, as well as on product package. It involves
how to company researchers on the product’s
successfully adapt marketing design, package color, and
strategies at each stage of the product packaging materials to be used.
life cycle.
KNOWING THE PRODUCT- One of the Product package refers to the
reasons why firms are successful is container used by the company to
because their employees have protect, promote and transport its
complete knowledge about the product. It has a product label
products they offer. Product or insert.
knowledge involves knowing the
product features, its competitive Label is part of a product package that
advantage, its usage, contains information about
price benefits, and how the product the product.
willsatisfy a market need.
IMPORTANCE OF PACKAGING
BRANDING
• It provides protection to the product
A brand is composed of the name of • It preserves the freshness of the
the product and the logo or design product
that represents the product. Brand • It assures easy handling and
speaks About certain attributes of a convenience of transport
product that consumers are looking • It can entice people to buy the
for. product. A product’s package is
considered the “silent salesman”
A brand name is the word or words • A product package speaks about the
that represent the product. On the product’s quality and gives impression
other hand, a brand mark is the design about the company’s reputation.
that goes with the brand name. It is
recognizable but cannot be uttered. CRITERIA FOR SELECTING PACKAGING
MATERIALS
CHOOSING A BRAND NAME
• The product package must be able
• One, a good behind name must be to provide sufficient product
distinct. The word must be closely protection.
related with the product. • Companies must consider the cost of
packaging materials to be used.
• Second, a good brand name is easy • Packaging must have display value.
to pronounce and easy to remember. It should be able to attract market
The market must have no difficulty with the packaging color and design.
reading or remembering the name or • It must provide convenience for
brand of a product and must be able carrying the product. most products
to say the brand name with ease. in the market are placed in packages
that are not only good to look
• Not all terms or names considered but also easy to carry.
by an entrepreneur or by a business
 • In terms of size, companies must increases the price of a certain product.
consider product’s packaging size, as • 5. Service oriented firms are more
practiced by other firms within the concerned about how they set prices. It
same industry. helps identify their competitive advantage
among others.
LEVELS OF PACKAGING Consumers may be divided into:
1. Price Shoppers- This group is
•Primary package – immediate interested in the best deal of product
container. they are commonly called as practical
•Secondary package – protects the and price concious.
primary package.
•Tertiary package – bigger package 2. Brand Loyal Customers- This group
that supports the product. believes that their  present brand are
superior  to others and are willing to
PRICING STRATEGIES pay fair prices for the product just to
A price determines the value acquire it.
of a good or service to the buyers even to
the sellers. It is 3. Status Seekers- Social climber.
the amount of money needed People who are interested on
in order to acquire a product or service prestigious  or called signature brand
and its accompanying services. or known products categories and
Price is the amount of money charged for willing to pay at any price.
a product or service or the sum of the
values that consumers exchange for the 4.Service or feature shoppers-  Seeks
benefits of having or using the product or on high value in customer service and
service. product features.
Price can be set in monetary and non-
monetary forms. Monetary and non- 5.Convenience shoppers- people who
monetary exchanges can be combined. buy products by nearby
Product can be exchanged through money communications, long store hours and
in a form of a value bills, coins, willing to pay for easier shopping.
credit card and even promissory notes.
It cannot be sold without a value for Five steps in developing a price
exchange both for the seller and buyer. strategy
Pricing strategy- the company must
Price planning includes a step by step provide ways to conceptualize actions
action in decision making by an contracts customer patrionage using the
organization regarding all aspects of price.
pricing either goods or services. It
involves activities and methods including 1. Objectives
policies to better appreciate the value of a a. Sales Based- Sales growth and
product. It should contain action for maximizing market share ; the new
management implementation to promote product design , product lines and
profit and stability to the market. promotional items.
Pricing promotes advantages to both b. Profit-based- maximizing profit
sellers and buyers such as: earning a satisfactory profit optimizing
tge return on investment or roi. satisfy
• 1. Price is the major key component of investors and stockholders.
exchange to achieve fairness to both
parties. c.Status Quo based- Firm seeks to avoid
• 2. Greater price competition among reasonable government actions minimize
rivals maintains its saleability. Company the effect of competitor actions.
uses price to attract its target market so as Maintain good channel relation,
to gain their loyalty. discourage the competitors reduce
• 3. Cost and prices have risen rapidly. A demands for supply and stabilize prices.
certain variable affects its saleavility. The company's goal is to maintain good
• 4. Technological advances led to intense image to the community by means of PR.
price competition which sometimes
2. Broad Price Policy- provides
procedures rules and methods to act in Flexible Pricing- pricing is based on
one specific situation. Link price with the customer ability to negotiate or is base
target market, image and other in divide power of the customer. the
marketing elements. Make sure that entrepreneur must meet the needs and
pricing are coordinated from each other. wants of the customer as they need to
adjust the price just to ensure
a. Penetration pricing- uses no prices to profitability and continuous patrionage
capture or attracted other mass market and loyalty
(leadership cost)
Odd pricing- prices are set level below
b. Skimming Pricing- Uses high Prices to even values. the entrepreneur uses odd
attract the market segment more numbers to attract customers in pricing
concern with product quality, product.
uniqueness, or status than price.
(differentiation) Price Quality Association- there is a
relationship between the quality and the
3. Price strategy- ways or some actions price. Consumers believed that high
to accomplish its goal and objectives of price presents high quality and low price
the company in gaining profit. = low quality. the entrepreneur in still to
the mind of the customer that having a
a. Cost based pricing- computing high price contain a quality materials.
merchandise, services and over head
cost then add mark up Prestige Pricing- customers set price
pricefloors and will not buy prices below
b. Demand Based price strategy- the those floors. Above price sealing, items
firm set prices after researching would be expensive. the entrepreneur
consumer desires and make sure the must consider the product to follow the
range of prices are acceptable to the pricefloor and ceiling set by the
target market. government.

c. Competition based price strategy- the Leader pricing- selling key items at no

firms set prices in relation to the prices to gain customer interest to its
competitor and entrepreneur must product line. it is hope that the customer
research the price said by their buy regularly price products together
competitors. Implementing a price with the especially price one. The
strategy the firms readiness to sell the entrepreneur must be aggressive to gain
products would be effective if given an the respect of the competitors so as they
attractive price strategy listed below: can value the actions that can take risks.

4. Implementing price strategy Multiple unit pricing- a firm offers

Customary Pricing- one price is discount to consumers for buying large
maintained over an extended period of quantities. the entrepreneur must
time. normally the price of the product consider selling more units produce
can’t easily change the entrepreneur has more profits to prevent overstocking and
considered that the price of the product maintain proper inventory selling in bulk
which are affordable to the buyers. can increase profit and promote growth.

Variable pricing- price response to cause Price Lining- instead of setting one price
fluctuation or differences in demand. in single model of good or service the
The entrepreneur must consider the law firm sells two models different quality
of demand and supply. and features at different prices.
Price Bundling- a firm offers a basic
One price policy- one price is charge to product options and customer service for
all customer by in demand product or one total price. the entrepreneur will
services under similar practitions. the combine product and services to the
entrepreneur must set one price to price set in the product.
products available for sale even though it
differs from design.
Unbundled pricing-  firm sells by
individual component and allow ADVERTISING- It is a paid, non-personal
customer to decide what to buy, the communication that captures the mass
entrepreneur will set price in the majority of customers about
product item from the other it can be goods, services, organizations, people,
sold separately. places and ideas that is transmitted
through various media with an identified
Geographic Pricing- prices are set in the advertising message as the
depending the distance between the sponsor.
buyers and  sellers. normally this activity
done when both parties are far from MEDIA
each other, the two parties must agree RADIO
to the price before the transaction takes TELEVISION
place. BROADCAST-
10 secs – 25 words
Terms- price agreement including 20 secs – 40 words
discount and timing of payments and
credit agreement. Drive time rate
drive time refers to dayparts in
5. Price Adjustments- change in cost which radio broadcasters attempt to
competitive and consumer demands reach the large number of people who
required changes in price listen to their car
radios while DRIVING
list prices-  regularly quoted prices to Run-of-station rate
customer as in catalog, price tags, and run of the schedule gives the publisher
purchase order. The salesman must have schedule leeway, depending on the
a clear and updated price when the availability of time.
negotiation takes place the minor Special features rate
corrections will be made. The sponsor had the chance to promote
in a special event.
Escalator Clauses- Clauses in the
contract for price increase after the Cost per rating point
scene is included before deliveries. The The cost of reaching 1% of the targeted
seller must communicate to the buyer audience in print (advertisements) or any
that there is price adjustment other media vehicle is
due to some reasons. called cost per rating point (CPP). In
other words, it refers to the cost of
Surcharge- supplementary to list prices. buying one percent of the target
this are the additional charges added to population.
the total price. the seller can include this Cost per thousand
regard to better gain customer loyalty or Cost per thousand (CPM) is a marketing
profit. term referring to the cost of a media
vehicle reaching 1,000 members
Mark ups-  raise regular selling price of an audience.
because demand is unexpected high or
cost are rising, the entrepreneur must be Publicity- It is a non-personal verbal
careful to increase the price of the and nonverbal communication regarding
products since it can affect customers goods, services, organizations, people,
loyalty and patronage. places and ideas that is transmitted
through various media but not paid for
PROMOTION by an identified sponsor rather by some
group of individual or concern
It is any form of verbal or written
organization.
communication used to inform,
NEGATIVE PUBLICITY
persuade and remind people about an
POSITIVE PUBLICITY
organization’s or individual’s goods,
services, image, ideas, community
involvement, or impact
PUBLIC RELATIONS - It is a strategic
on the society by providing satisfaction.
process of maintaining the reputation
of an individual, organization, or brand in manufacturer to the final user.
the eyes of the public.
Marketing intermediaries compose the
Sales Promotion - It involves paid distribution channel. They are people
marketing and non-personal serve as the link between the firm or
communication which activities are to manufacturer or the market. They
stimulate consumer purchases by perform tasks such as purchasing,
offering incentives before/after buying storing, selling, and transporting
or using the product. products.

PLACE Manufacturers are the makers or

producers of a final product.
Service Providers are the one who
Product distribution- is a critical
provides intangible product to gain
factor in the efficient distribution of
satisfaction from the customer.
products from the manufacturer to the
Wholesaling intermediaries are those
final users of the products. The objective
that purchase products from the
of any product distribution is to get the
manufacturers and sell these products
right quantity of goods at the right place
to retailers and other industrial users.
and right time with the least possible
Retailers are those that purchase
cost.
products and resell them to final users or
market their own use. Retailing is the
Physical distribution- of products and
final stage in the channel of distribution.
logistics deals with the same activities.
These consist of materials handling,
order processing, warehousing, Levels of Distribution Channel
transportation, and inventory.
Logistics is concerned with materials Zero-Level Channel – From the
management and physical distribution. manufacturer, products reach the
Physical distribution links manufacturing market directly. This is also known as
and customers, while material direct marketing. No marketing
management focuses on the intermediaries or distributors are
link between the supplier and the needed.
manufacturing. One-Level Channel – before products
reach the market, products pass through
Customer Service – the ability of the marketing intermediaries either through
organization to satisfy the customer to the wholesaler or retailers.
its maximum level.
Shipping – the ability to transfer a Two-Level Channel – this consists of two
durable product from one location to the channels of distribution where
other normally a far place. products pass through intermediaries
Warehousing – the ability to properly before reaching the end users. These
store the raw materials, semi channels are the wholesalers and
processed goods used to produce a final retailers, respectively.
product.
Inventory Control – the ability to provide Three-Level Channel – products from the
sufficient supply of raw materials manufacturer pass through three
at the right quantity, time and quality. middleman or channels – the
Packaging – the ability to make the manufacturer’s selling agent, to
product presentable before the physical wholesaler, and to retailer before the
appearance including its taste, color, products reach the market.
size, weight and shape.
Receiving Materials Handling – the Distribution Strategies Used by
ability to properly manage the Companies
materials for the final production.
Intensive Distribution – firms place
Distribution Planning is a systematic products in as many outlets as possible,
decision making regarding the physical be it in supermarkets, department
transfer of goods and services from the stores, convenience stores, hotels, and
 hospitals, among others. This makes the It serves as links between the wholesalers’
products accessible and available to all products and the
consumers anytime, anywhere. customers.
Selective Distribution – products are It sells products that end users can afford.
distributes in a limited number of Retail stores are commonly accessible to
outlets. Companies develop close the market.
business relationship with selected
channels. Classification of Retailers
Exclusive Distribution – limited number
of middlemen used in a geographic area. Retailers can be classified based on the
The middleman is assigned to agent a amount of service they offer the market:
specific brand. This set-up is not
convenient to the customers because Self-service is the type used by sellers in
they have to go to that particular outlet convenience stores.
where products are distributed or being Full-service stores offers more choices of
sold. specialty products providing more services
Dual Channels of Distribution – uses a to customers; thus operating expenses are
combination of the above to appeal to high which result in higher product price.
different market segments by selling Limited-service retailers carry more
through two or more different channels. shopping goods, therefore providing more
The middleman can either use exclusive, sales assistance for customers who need
selective, and intensive to obtain faster information about a product.
and high profit. Personal-service retailers provide
personalized service to consumers. Personal
WHOLESALING AND RETAILING services and facilities given to the customer
build up goodwill and increase the volume
Wholesaling involves transaction where of sales, as well as profit.
products are sold for resale. The
person involved in wholesaling is called
the wholesaler. Other functions of
wholesalers are:

They buy in large quantities and break

these into smaller numbers for resale to
retailers.
They provide product knowledge to the
retailers as they promote and sell the
products.
They provide the manufacturer the
necessary feedback or market
information about his product.
They handle the storage of the products.
They carry the inventory of the
manufacturer’s products.
They provide their own sales agents so
that it helps the manufacturer with
minimizing manpower cost.

Retailing is the process of selling

products to the end users. Retailing is
the last stage in the channel of
distribution. The person involved in
retailing is called the retailer. Retailing is
an important industry because: It helps
the economy by creating jobs or
providing employment.
Majority of the market patronizes retail
purchases.