Product & Service Classification

# Define product. (Syllabus item)
Ans: - A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need of consumers products include more than just tangible goods.
Broadly defined, products include physical objects, services, events, persons, places, organization, ideas or mixes of these entities.
The term “product” broadly to include any or all this entities.

# What is service?
Ans: - Service means any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Examples are banking, hotel, airline, retail, tax preparation, and liome repair services.
# Classifications of product. (Syllabus item)
Ans: - Products and services fall into two broad classes based on the types of consumers that use them consumer products and industrial products. Broadly defined, products also include other marketable entities such as experiences, organization, persons, place, and ideas.
6. Consumer products: - consumer products are products and services bought by final consumer for personal consumption. Marketers usually classify this products and services further based on how consumers go about buying them. Consumer’s products include convenience products, shopping products, specialty products, and unsought products.
I. Convenience products: - Consumer product that the customer usually buys frequently immediately and with a minimum of comparison and buying effort. Example can be newspapers, fast-food.
II. Shopping products: - Consumer product that the customer, in the process of selection and purchases, characteristically compare on such bases as suitably, quality, price and style. Example furniture, clothing, hotel, and airlines services.
III. Specialty product: - Consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Examples high priced photographic equipment, designer clothes.
IV. Unsought product: - Consumer product that the either does not know about or knows about but does not normally thing of buying. Examples life insurances, blood donations to the Red – Cross.
7. Industrial products: - Industrial products are those purchased for further processing or for use in conducting a business. Thus, the distinction between a consumer product and an industrial product is based on the purpose for which the product is bought. The three groups of industrial product & services include Materials and parts, capital item and supplies & services.
I. Materials and Parts: - Materials & parts include raw materials and manufactured materials and parts. Raw materials consists of farm products (wheat, cotton etc), natural products (fish, lumber etc).
II. Capital items: - Capital items industrial products that aid in the buyers production or operations including installations and accessory equipment.
III. Supplies & Services: - The final group of business products is supplies and services. Supplies include operating supplies (Lubricants, coal, paper etc) and repairs maintain items.
# Individual product decision. (Syllabus item)
Ans: - Individual product and service decisions also focus on product attributes, banding, and packaging, labeling, and product support services.
1. Product and services attributes: - Developing a product or services involves defining the benefits that it will offer. These benefits are communicated and delivered by product attributes such as quality, features, style, and design.
а. Product quality: - One of the major positioning tools for the markets. The ability of product to perform its functions it include the product overall durability, reliability, precision, ease of operation & repair, and other valued attributes.
б. Product features: - A product can be offered with varying features. A stripped – down model, one without any extras is the starring point.
в. Product style & design: - Design is a larger concept than style. Style simply describes the appearance of a product. Styles can be eye – catching producing. A sensational style may grab attention but it does not necessarily make the product perform better.
2. Branding: - A name, term, sign, symbol, or design or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Brands also tell the buyer something about product quality. Branding also gives the seller several advantages.
3. Packaging: - The activities of designing and producing the container or wrapper for a product. Levels of packaging are (1) primary package, (2) secondary package and (3) tertiary package. Traditionally the primary function of package was to contain and protect the product.
4. Labeling: - Labeling is part packaging and consists of printed information that write down on the package (1) identification of product or brand unit price, (2) Description of who, where, and when it was made its contents and how to use safely, (3) Promote the product through attractive graphics.
5. Product support services: - Services is a major tool in getting competitive advantage. Comprises should design its support services to profitably meet the needs of target customers.

# Product line decisions (Syllabus item)
Ans: - A group of products that are closely related because they function in a similar manner are sold to the same customer groups are market through the same types of outlets, or fall within given prices ranges. Product line decisions involves product line length – the number of items in the product line may be too short or too long depends on companies objectives and resources company can length its product into two ways –
1. Stretching: - Length beyond current range, downward – upward and both way.
2. Filling: - Length within current range.

# Describe the decisions companies mark regarding product mix.
Ans: - The set of all products lines and items that a particular seller offers for sale. Avon’s product mix consists of major product line: beauty products, jewelry & accessories and inspirational products. These product mix dimensions provide the handles for defining the company’s products strategy. The company can increase its business in four ways. These are width, length, depth and consistency.

# Give explanation on major brand strategy decision.
Ans: - The major brand strategy decisions involve brand positioning, brand name selection, brand sponsorship and brand development.
Brand positioning Brand name selection Brand sponsorship Brand development
Attributes Selection Manufacture’s brand Line extensions
Benefits Private brand Brand extensions
Protection Multi brands
Beliefs & values Licensing co- branding New brands
1. Brand positioning: - Marketers need to position their brands clearly in target customers. They can position brands at any of three levels. Attributes are the least desirable level for brand positioning. A brand can be better positioned by associating its name with a desirable benefit. The strongest brands go beyond attribute or benefit positioning.
2. Brand name selection: - A good name can add greatly to a product’s success. However finding the best brand name is a difficult task. Desirable qualities for a brand name include the following –
a) It should suggest something about the product’s benefit and qualities.
b) It should be easy to pronounce, recognize and remember short name help.
c) The brand name should be distinctive.
d) It should be extendable.
3. Brand sponsorship: - A manufacturer has four sponsorship options. The product may be launched as a manufacturer brand. The manufacturers may sell to resellers who give it a private brand. Finally two companies can join forces and co - brand a product.
4. Brand development: - A company has four choices when it comes to developing brands. It can introduce line extension, brand extension, multi – brand and new brands. Brand development strategies:
Product category
Brand name Existing Existing New
Line extension Brand extension
New Multi brands New brand
a) Line extension: - Using a successful brand name to introduce additional items in a given product category under the same brand name such as new flavors, forms, colors, added ingredients or package size.
b) Brand extension: - Using a successful brand name to launch a new or modified product in a new category.
c) Multi – brands: - It offers a way to establish different features and appeal to different buying motives.
d) New brands: - A company may crate a new brand name when it enters a new product category for which none of the company’s current brand name is appropriate.

# what is services marketing?
Ans: - Service industries vary greatly. Government offer services through courts, employment services, hospital, military services, police and fire departments, portal services and schools. Privates not for profit organization offer services through museums, charities, churches, colleges, foundation etc.
# Marketing Strategies for Service Firms. (Syllabus item)
Ans: - Just like manufacturing business goods service firm use marketing to position them strongly in chosen their target market.
1. The service profit chain: - The chain that links service firm profits with employee and customer satisfaction. This chain consists of five links –
a) Internal service quality: - Superior employee selection and training, a quality work environment, and strong support for those dealing with customers, which result in internal service quality.
b) Satisfied & Productive service employees: - More satisfied, loyal and hard working employees, which result in satisfied & productive service employees.
c) Greater service value: - More effective and efficient customer value creation and service delivery, which results in greater service value.
d) Satisfied & loyal customers: - Satisfied customers who remain loyal, repeat purchases and refer other customers, which results in satisfied & loyal customers
e) Healthy service profits and growth: - Superior service firm performance.
2. Internal marketing: - Marketing by a service firm to train and effectively motivate its customer – contract employees & all the supporting service people to work as a term to provide customer satisfaction.
3. Interactive marketing: - Marketing by a service firm that recognizes perceived service quality depends heavily on the quality of buyer – seller interaction.