Product

1. Product

2. Controllable Variables Product A Product is everything one receives in an exchange, including all tangible and intangible attributes and expected benefits. A Classic Sport Football for example, includes not only the ball itself but also instructions, an inflation needle, and a warranty.

3. Controllable Variables Product A car includes a warranty, owner’s manual, and perhaps free emergency road service for a year. Some of the intangibles that may go with the car include status associated with the ownership and memories generated from rides.

4. Controllable Variables Product Developing and managing products effectively is crucial to an organization’s ability to maintain successful marketing mixes.

5. Controllable Variables Product A product may be a good, service, or idea. A good is a real, physical thing that we can touch, such as a Classic Sport football. A service is the result of applying human or mechanical effort to a person or thing

6. Controllable Variables Product Basically a service is a change we pay others to make for us. A real estate agent’s services result in a change in the ownership of real property. A barber’s services result in a change in your appearance.

7. Controllable Variables Product An idea may take the form of philosophies, lessons, concepts, or advice. Often ideas are included with a good or service. Thus we may buy a book (a good) that provides ideas on how to lose weight. Or we may join Weight Watchers for ideas on how to lose weight and for help (services) in doing so.

8. Controllable Variables Product PRODUCT CLASSIFICATION Consumer Product Business Product

9. Controllable Variables Product PRODUCT CLASSIFICATION Consumer Product A product bought to satisfy personal and family needs. There are three categories of consumer products.

10. Controllable Variables Product PRODUCT CLASSIFICATION Consumer Product These groupings are based primarily on characteristics of buyer’s purchasing behavior

11. Controllable Variables Product PRODUCT CLASSIFICATION0- Consumer Products • Convenience Products • Shopping Products • Specialty Products

12. Controllable Variables Product Convenience Products Is a relatively inexpensive, frequently purchased item for which buyers want to exert only minimal effort. The buyer spends little time in planning the purchase of a convenience item or in comparing available brands or sellers.

13. Controllable Variables Product Convenience Products Examples of convenience products are : • Bread • Gasoline • Newspapers • Chewing Gum • Soft Drinks

14. Controllable Variables Product Shopping Products Is an item for which buyers are willing to expend considerable effort on planning and making the purchase. Buyers allocate ample time for comparing stores and brands with respect to prices, product features, qualities, services, and warranties.

15. Controllable Variables Product Shopping Products Examples of shopping products are : • Appliances • Furniture • Men’s Suites • Bicycles • Cellular Phones

16. Controllable Variables Product Shopping Products These products are expected to last for a fairly long time and thus are purchased less frequently than convenience items

17. Controllable Variables Product Specialty Products It possesses one or more unique qualities for which a buyer is willing to expend considerable purchasing effort. Buyers actually know what they want and will not accept a substitute.

18. Controllable Variables Product Specialty Products In searching for specialty products, purchasers do not compare alternatives

19. Controllable Variables Product Specialty Products Examples of specialty products are : • Unique Sports Cars • Rare imported wine • Specific type of antique china • Special handcrafted furniture

20. Controllable Variables Product PRODUCT CLASSIFICATION Consumer Product Business Product

21. Controllable Variables Product PRODUCT CLASSIFICATION Business Product A product bought for resale, for making other products, or for use in a firm’s operation

22. Controllable Variables Product PRODUCT CLASSIFICATION- Business Products • Raw Materials • Major Equipment • Accessory Equipment • Component Part

23. Controllable Variables Product PRODUCT CLASSIFICATION- Business Products • Process Material • Supply • Business Service

24. Controllable Variables Product Raw Materials Is a basic material that actually becomes part of a physical product. It usually comes from mines, forests, oceans, or recycled solid wastes.

25. Controllable Variables Product Raw Materials Raw materials usually are bought and sold according to grades or specification.

26. Controllable Variables Product Raw Materials Examples of Raw Materials are : • Gravel • Cow • Trees • Tomato • Aluminum • Wood • Copper

27. Controllable Variables Product Major Equipment Includes large tools and machines used for production purposes. Some major equipment is custom-made for a particular organization, but other items are standardized products that perform one or several tasks for many types of organizations.

28. Controllable Variables Product Major Equipment Examples of Major Equipment are : • Cranes • Oven • Bulldozers • Printing Press • Furnaces • Dump Truck

29. Controllable Variables Product Accessory Equipment Is standardized equipment used in a firm’s production or office activities. Compared with major equipment, accessory items are usually much less expensive and are purchased routinely with less thought.

30. Controllable Variables Product Accessory Equipment Examples of Accessory Equipment are : • Hand tools • Carts • Computers • Calculators • Pots, Pans, Utensils, Plates

31. Controllable Variables Product Component Part Is part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly.

32. Controllable Variables Product Component Part Examples of Component Parts are : • Tires • Computer chips • Switches

33. Controllable Variables Product Process Material Is used directly in the production of another product. Unlike a component part, a process material is not readily identified in a finished product.

34. Controllable Variables Product Process Material Like raw materials, process materials are purchased according to industry standards, grades, and specifications.

35. Controllable Variables Product Process Material Examples of Process Material are : • Preservatives or additives • Industrial Glue • Dyes

36. Controllable Variables Product Supply Facilitates production and operations, but it does not become part of the finished product.

37. Controllable Variables Product Supply Examples of Supply are : • Paper • Pencil • Oil • Cleaning Agents

38. Controllable Variables Product Business Service An intangible product that an organizationuses in its operations. Purchasers must decide if they want to do their own services or to hire them from outside the organization.

39. Controllable Variables Product Business Service Examples of Business Services are : • Financial • Rubbish • Marketing/Advertising • Janitorial • Legal

40. Controllable Variables Product PRODUCT CLASSIFICATION NOTE: A single item can be both a consumer and a business product. A broom is a consumer product if you use it in your home. However, the same broom is a business product if you use it in the maintenance of your business.

41. Controllable Variables Product PRODUCT CLASSIFICATION NOTE: After a product is classified as a consumer or business product, it can further categorized as a particular type of consumer or business product.