ENTREP LESSON 3

• It can be tangible or intangible in nature that can be offered for satisfaction of the recipient.

  • It is any item or service you sell to serve a customer’s needs or wants.

  Product
• A physical object that can be perceived by touch such as a building, vehicle, gadget, or clothing.

  Tangible products
• Includes the image and service features of a certain entity. It gives emphasis on the intangible benefits that the customers will be getting from buying the product. (maximum exp/benefits)

  • An additional benefit or special service supporting the main product

  Augmented product
• WHAT ARE THE LEVELS OF PRODUCT?

  1. Tangible products
  2. Augmented Products
  3. Generic Products
• Emphasizes the impact of the product to the consumer, not the seller.

  • This will signify the purpose of its existence and the primary objective in creating the product.
  • Products that are named only by their basic product type, and not an individual brand.


  Generic Product
• WHAT ARE THE TWO TYPES OF PRODUCT?

  Goods and services
• Are sale of the physical products from the manufacturer to the consumers or final and ultimate user.

  • These are the tangible products that can measure the satisfaction with results or evidence as manifested through physical movement.

  Goods
• are the physical products that are used over a long period of time.

  • These products are expensive because of the quality of the materials used.

  Durable Goods
• Are the physical products that are quickly and easily consumed or worn out, become obsolete, unfashionable or no longer popular.

  • The products are inexpensive and can easily be damaged

  Non-durable goods
• Are intangible products that satisfaction can be measured in future preferences

  Services
• services are the consumers rented facility of the sellers in a certain period of time.

  Rented-good services
• Are the repair and maintenance services rendered by the sellers to the products of the customers.

  Owned-goods services
• Is personal service on the part of the seller, most common are the expertise and profession of the seller.

  Non-good services
• what are the three types of services?

  1. Rented-good services
  2. Owned-good services
  3. Non-good services
• the four characteristics of services:

  `1. Intangibility

  2. Credibility

  3. Inseparability

  4. Variability
• is the services that cannot be displayed, transported, stored, packaged or inspected before buying.

  Intangibility
• The credibility of the service provided most of the time counts.
• is the service provider and services that cannot be separated. It cannot accomplish the purpose if one is missing.

  Inseparability
• Is when the service is difficult to standardize because it varies upon the performance of the provider.

  Variability
• 2 main categories of a product:

  • consumers product
  • industrial products
• these are goods and services destined/produced for the final consumer for personal, family, or household use.

  • The use of the goods or services designates it as a consumers product

  Consumer product
• are purchased with the minimum or less effort because the buyer has knowledge of product characteristics prior to shopping. The consumer in not willing to search or look for information and will accept a substitute rather than visit another store

  Convenience products
• two types of convenience product:

  1. Staples
  2. impulse product
• Are low prices items that are routinely purchased on a regular basis and are products that are used everyday. Ex: rice

  Staples
• are the items that the consumer does not plan to buy. The customer was attracted to buy the product for some reasons like the impressive promotional campaign or low prices on sale items, etc.

  Impulse products
• Are products that the consumers acquire through further knowledge and information in order to make a final purchase decision.

  • Consumers will exert effort in searching or looking for information because these products have high prices and are bought infrequently

  Shopping products
• provide customers with information and evaluate product features, performance, options, warranties and other factors.

  Attribute-based shopping products
• Enable customers to judge product attributes to be the same and look around for the least expensive item.

  Price-based shopping products
• are the items with particular brands and stores to which consumers are loyal. (offer services that are uniquely theirs)

  • They are willing to make a significant or specific effort to acquire the brand desired units and will pay a higher or above the price of similar products.

  Specialty products
• Are goods or services purchased for use/consumption in the production/manufacturing of other goods or services, in the operation of a business or for resale to other customers.

  • are categorized based on the degree of decision-making involved, cost, rapidity of consumption, role in product, and change in form.

  Industrial products
• NEW PRODUCT DEVELOPMENT PROCESS:

  STEP 1 : Idea Generation

  • Brainstorming, generating an idea.

  STEP 2 : Idea Screening

  • Selecting the best options; filtering

  STEP 3 : Concept Development and Testing

  • It is the needs of a product, while also using trial and error technique.

  STEP 4 : Business Analysis

  • The price, research, and basic requirements for a product.

  STEP 5 : Product Development

  STEP 6 : MARKETING TESTING