Product Management Notes | BSBA-MM 1-1N | PDF

PRODUCT MANAGEMENT​ BSBA-MM 1-1N | Dr. Roxanne V. Selmo | 2nd Semester | A.Y. 2024-2025 the marketing mix are just there to sell WHAT IS PRODUCT? the product. ​ The product is a key variable in...

PRODUCT MANAGEMENT​ BSBA-MM 1-1N | Dr. Roxanne V. Selmo | 2nd Semester | A.Y. 2024-2025 the marketing mix are just there to sell WHAT IS PRODUCT? the product. ​ The product is a key variable in ​ It has two type: marketing mix Simplified: ​ Products are typically a firm’s most ​ Core Product important asset ​ Actual Product ​ Augmented Product Extended: WHAT IS PRODUCT? ​ Core Benefit ​ A product is a good, a service, or an ​ Generic Product idea received in an exchange. It is ​ Expected anything that can be offered to a Product/Level market to satisfy the desire or need of ​ Augmented Product a customer. ​ Potential Product ​ It can be classified as tangible or intangible. 3 LEVELS OF PRODUCT (SIMPLIFIED) Tangible Product ​ It is a physical object that can be Core Product perceived by touch. ​ The core benefit is the fundamental ​ These are the things that we can use need that the customer is satisfied for everyday, we can feel with our five when they buy the product. senses since this is tangible. ○​ Ex: building, vehicle, gadget, Actual Product or clothing. ​ The actual product is the product features and its design. Intangible Product ​ Cannot be felt, touched, and Augmented Product measured. ​ The augmented product is any ​ Non-physical, but still extremely non-physical part of the product. The valuable. augmented product can be an ​ Services: important way to tailor your product ○​ Performance and efforts, to meet the needs of specific which can be durable or customers. nondurable. ○​ Result of the application of 5 LEVELS OF PRODUCT BY KOTLER human and mechanical efforts (EXTENDED) to people or objects. ​ Ex: Travel agency bookings, medical Core Benefit examinations, day ​ It is the basic good or service care, banking, purchased marketing, and maintenance & repair Generic Product ​ Ideas: ​ The basic product forms the nucleus of ○​ Concept, philosophy, or the total product. It constitutes the image, issues or inventions. problem-solving features or basic ○​ Ideas provide the benefits that consumers seek when psychological stimulation that they acquire a product. aids in solving problems or adjusting to the environment. Expected Product/Level ​ Ex: invention of the ​ It includes a set of attributes and light bulb by General conditions that the buyer expects Electric or an internet which marketer should provide for load. purchase to take place. Augmented Product PRODUCT ANATOMY ​ The augmented product is what the ​ Product is the central component of customer is really buying. It is a the marketing mix because other Ps in PRODUCT MANAGEMENT​ BSBA-MM 1-1N | Dr. Roxanne V. Selmo | 2nd Semester | A.Y. 2024-2025 combination of what the seller Raw Materials intends, and the buyer perceives. ​ Basic natural materials or substances that are used in the manufacturing of Potential Product goods. ​ It encompasses all the augmentations and transformations that the product Component Parts might ultimately undergo in the ​ It is part of a physical product that can future. be either finished items ready for assembly or products that need little processing before assembly. CLASSIFICATION OF PRODUCTS ​ It has two type: Process Materials ○​ Consumer Products ​ Are used directly in the production of ○​ Business Products other products not readily identifiable. Maintenance, Repair, Operations CONSUMER PRODUCTS Supplies (MRO Supplies) ​ Items that facilitate production and operations but do not become part of Convenience Goods the finished product. ​ Inexpensive and exerts minimal effort when purchasing. Business Services ○​ Ex: Shampoo, Toilet Paper, ​ Are the intangible products that many Candles, etc. organizations use in their operations. They include financial, legal, market Shopping Goods research, information technology, ​ Are goods in which the consumer is cleaning services, and many more. willing to invest time and effort. ○​ Ex: Phones, Laptops, etc. PRODUCT LINE Specialty Goods ​ Products or services with unique ​ A group of closely related product characteristics or brand identification items that are considered to be a unit that a significant group of buyers are because of marketing, technical or willing to spend considerable effort to end-use considerations. It refers to the obtain. assortment of similar things that ○​ Ex: Designer Clothes, Luxury the firm holds Cars, etc. Advantages of Expanding Product Line Unsought Products ​ These are products purchased when a 1.​ Increased Revenue sudden problem must be solved. 2.​ Improved Customer Loyalty ○​ Ex: Life Insurance, Fire 3.​ Greater Market Share Extinguisher, etc. 4.​ Enhance Your Reputation BUSINESS PRODUCTS PRODUCT MIX ​ Also known as product assortment or product portfolio, refers to the Installations complete set of products and/or ​ Include facilities and major pieces of services offered by a company. A equipment that are non-portable. It is product mix consists of product lines, used directly in the production process which are associated items that of products. consumers tend to use together or think of as similar products or Accessory Equipment services. ​ Does not become a part of the final physical product but is used in production or office. Usually cheaper activities. purchased routinely with less negotiation. PRODUCT MANAGEMENT​ BSBA-MM 1-1N | Dr. Roxanne V. Selmo | 2nd Semester | A.Y. 2024-2025 Dimensions of Product Mix ○​ Expanding the depth: can provide the ability to ​ Width: Also known as breadth, readdress and better fulfill refers to the number of product lines current consumers. offered by a company. DIFFERENCE OF ​ Length: Refers to the total number of PRODUCT LINE AND PRODUCT MIX products in a firm’s product mix. ​ Depth: Depth refers to the number of Product Line Product Mix variations within a product line. A group of closely Complete set of ​ Consistency: Consistency refers to related products. products or services how closely related product lines are offered by a company. to each other. It is in reference to their use, production, and distribution Full line product Dimensions: channels. The consistency of a product strategy Limited-line Width, Length, Depth, mix is advantageous for firms product strategy and Consistency attempting to position themselves as a niche producer or distributor. Price range Company's age functionality target financial standing audience brand brand identity IMPORTANCE OF PRODUCT LINE AND PRODUCT MIX IN A BUSINESS Inventory Management ​ A critical element of the supply chain, it helps in ordering, stocking, and effectively utilizing a business’ products. Company Image Advantages of a Product Mix ​ A business’ product mix helps ​ The product mix of a firm is crucial to determine a brand’s image. understand as it exerts a profound Understanding the mix of your brand impact on a firm’s brand image. allows a company to stay consistent ​ Maintaining high product width and with its products. depth diversifies a firm’s product risk and reduces dependence on one product or product line. With that Product Focus being said, unnecessary or non ​ Knowing what products your core value-adding product width customers purchase from your product diversification can hurt a brand’s mix is useful in knowing whether image. adding a product would be monetarily ○​ Ex: if Apple were to expand beneficial for a business. its product line to include refrigerators, it would likely have a negative impact on its brand image with consumers. ​ In regard to a firm expanding its product mix: ○​ Expanding the width: can provide a company with the ability to satisfy the needs or demands of different consumers and diversify risks.