PRODUCT
Prof. Mohd. Ashraf Ali
Concept of product
Product/Service is the heart of marketing mix
Without product need can’t be satisfied
Without product nothing can be distributed, nothing can be promoted and nothing can be priced
It is the basic tool of marketing and all other elements of marketing mix
A product is the item offered for sale
It can a service or an item and is made at a cost and each is sold at a price
Definition
According to Alderson ‘Product is the bundle of utilities consisting of various product
features and accompanying services.’
Financial product refers to instrument that help you save, invest, get insurance or get mortgage
These are issued by various banks, financial institutions, stock brokerages, insurance
providers, credit card agencies and government sponsored institutes
Cont
Product needs to be relevant (need to be satisfied)
Product needs to be communicated
Product needs a name
It should be adaptable (according trends, time)
Objectives of Product:
To meet the customer needs
To guarantee’s firm survival
To increase firm’s sale
Cont
To ensure better resource utilization
To spot –light firm’s strengths and weakness
Objectives Product Design:
To ensure growth of the organization
To utilize the surplus capacity of the
organization, such as physical facility, man power etc.
To utilize the surplus funds of the organization
To meet new requirement of the customer
Cont
To increase company’s market share and to target new market segment
Elements/Components of product:
A product is said to have three components
Core benefits(functions of the product)
Tangible or physical element(What it looks like/duration)
Augmented benefits(Extra elements free installation/processing charges free for financial)
Cont
Product Levels:
Core benefits- this focus on the purpose for which the product in intended
Generic product- This represents qualities of product
Expected product- this is about all aspects the consumer expects to get when they
purchase
Augmented product- this refers to the
additional factors which sets the product apart from that of the competition(brand identity)
Cont
Potential product- Transformation of the product may under go in the future
Features of Product:
Tangibility
Intangible attributes(consultancy, banking, insurance)
Associated attributes (packaging, brand, warranty, after sales service)
Exchange value
Customer satisfaction
