PRINCIPLES

• Product


  Anything offered for sale by a firm to buyers to satisfy their physical, social, symbolic, and psychological wants and needs
• Forms of products


  • Physical object
  • Service
  • Place
  • Organization
  • Personality
• Physical products


  • Quality
  • Reputation of the manufacturer
  • Packaging
  • Credit
  • Information about the product
  • Warranty
  • After sales service
  • Delivery
• Classification of products


  • Consumer goods
  • Industrial goods
• Consumer goods


  Goods intended for final consumption by consumers
• Classification of consumer goods by rate of consumption and tangibility

  • Durable goods
  • Nondurable goods
  • Services
• Durable goods


  Tangible goods which normally survive many uses
• Nondurable goods


  Tangible products which are consumed in one or a few uses
• Services


  Intangible goods like activities, benefits, or satisfaction which are offered for sale
• Classification of consumer goods by consumer's shopping habits

  • Convenience goods
  • Shopping goods
  • Specialty goods
  • Unsought goods
• Convenience goods


  Goods purchased with a minimum of effort, readily available in many retail outlets
• Shopping goods


  Goods bought only after an effort to compare with other goods is made
• Specialty goods


  Goods that consumers seek to buy and they are not willing or they are not able to accept substitutes
• Unsought goods


  Goods that are not yet wanted by or are still unknown to the consumer, so consumers use no effort to seek them
• Types of unsought goods

  • New unsought goods
  • Regularly unsought goods
• New unsought goods


  New ideas or products that the consumer still have to know to be motivated to buy
• Regularly unsought goods


  Goods that stay unsought but not unbought forever
• Classification of industrial goods


  • Installations
  • Accessory equipment
  • Raw materials
  • Component parts and materials
  • Supplies
• Installations


  Industrial products with long life, generally expensive, and form part of the major capital equipment of an industrial firm
• Accessory equipment


  Industrial goods used as aids in the production process, have a shorter usable life than installations
• Raw materials


  Unprocessed goods that will become part of another product, of two types: farm products and natural products
• Component parts and materials

  Processed industrial goods that will still be used and become an actual part of the finished product
• Supplies


  Items used as aids in the operating process but do not become part of the finished product
• Raw Materials


  • Unprocessed goods that will become part of another product
  • Two types: (1) farm products; and (2) natural products
• Farm products


  • palay, tomatoes, eggplant, coconut, milk
• Natural products


  • fish, lumber, gold, diamond, coal, oil
• Component Part and Materials

  Processed industrial goods that will still be used and become an actual part of the finished product
• Component materials


  • paper for further processing into printed magazine, textiles into dresses, flour into bread
• Component parts


  • tires mounted in motor cars, strings in a violin, knobs on television
• Supplies


  Items that are used as aids in the operating process but do not become part of the finished product
• Supplies


  • pencils, ink, paper clips, fasteners
• Core or generic product


  What the buyer is really buying
• Actual or formal product


  The design, brand name, and packaging that delivers the core benefits to the customer
• Augmented product


  Additional services or benefits of the actual product
• Branding


  Marketing action which identifies and helps differentiate the goods or services of one seller from those of another
• Brand


  A name, term, sign, symbol, or design, or a combination of these elements, that is intended to identify the goods or services of one seller or a group of sellers
• Legally registered brands


  Provided with legal protection called trademark
• Brand Name


  Part of a brand consisting of words, letters, and/or numbers that can be vocalized
• Brand Mark


  Part of a brand that appears in the form of a symbol, design, or distinctive coloring or lettering, and which cannot be vocalized
• Packaging


  All activities involved in designing and producing the container or wrapper for a product