Product Attributes and Classification PDF

**Product** -- item offered for sale. Can be product or services. **Essential Attributes of a Product** **Tangible --** it may be able to **touch**, seen and presence felt. **Intangible** -- capable of **providing services**. Repairing, hair-dressing insurance etc. **Associated Attributes** -- a...

**Product** -- item offered for sale. Can be product or services. **Essential Attributes of a Product** **Tangible --** it may be able to **touch**, seen and presence felt. **Intangible** -- capable of **providing services**. Repairing, hair-dressing insurance etc. **Associated Attributes** -- a product consist of various **product features** and **accompanying services**. **Exchange Value** -- term used in economics to refer to relative **price for a good in terms of other goods**. **Satisfaction** -- capable of providing **satisfaction t**o buyer, both real and **psychological**. **Classification of Products** **Consumer Goods** -- products which are **bought by the households** for personal non-business use. - **Convenience Goods** -- products want to **purchase frequently**, immediately and with minimum effort. - **Shopping Goods** -- goods that are purchased only after the buyer has spent time and effort **comparing price**, quality and style. - **Specialty Goods** -- goods that have particularly **unique characteristics** and **brand identification**. **Industrial Goods --** goods which are meant to be bought by the buyers as **inputs in production** of other products or for rendering some services. - **Raw Materials** -- industrial goods that become **part of another physical products**. - **Fabricating Material and Parts** -- also becomes actual part of the finished products but **already been processed**. - **Installation** -- **directly sold to the user** and middleman are not involved. Pre- sale and post-sale servicing are required for these products. - **Accessory Equipment** -- they are used to **aid production** of an industrial buyer and does not have an influence on scale of operation of the buyer. - **Operating Supplies** -- low priced, **short-lived items** purchased with minimum effort and could well be termed as convenience goods of industrial field. **Durable and Non-Durable Goods** - **Durable** -- **tangible** products with along life and lasing many years of active services to owner. - **Non-Durable** -- products which are **consumed in one go** or last few uses and get depleted on consumption. **Services --** are those separately identifiable, essential intangible activities which provide want satisfaction, and which are not necessarily tied to the sale. **Market Feasibility** -- study is the process of determining the **implement ability** of a certain product. **Feasibility Studies** -- are done in based on **how things are happening in the current market**, how the market will respond to the product, and the potential advantages and problems that may arise. **Demographic** -- includes age, gender, income, occupation, social background, religion, etc. **Sociological Data** -- data pertaining to attitudes include **preferences**, likes and dislikes habits, responses, etc. **Attitudinal Data** -- information about **customer feelings**, motivation, and opinions toward a product, brand, or customer experience. **Surveys** -- are used as a **method of gathering data** in many different fields. **Survey Research** -- means **collecting information about a group** of people by asking them questions and analyzing the results. **To conduct an effective survey, follow these six steps:** 1.**DETERMINE** -- who will participate in the survey 2.**DECIDE** -- the type of survey (mail, online, or in-person) 3.**DESIGN** -- the survey questions and layout 4.**DISTRIBUTE** -- the survey 5.**ANALYZE** -- the responses 6.**WRITE UP** -- the results **Price** -- determine what the **average market price** that customers are willing to pay for your products or services. **Distribution Channels** -- are the methods by which **companies deliver products** and services to customers and end users. **Promotion Methods** -- used by businesses include **print media** such as local and national newspapers, leaflets, and flyers. **Consumer Profile** -- is a document that **lists pain points**, interests, buying patterns, and demographic characteristics off a company's customers. **Government Policy** -- are reflected in production capacities, import and export trade controls, import and customs duties, export incentives, excise duties, sales tax, industrial licensing, credit controls, financial regulations, etc. **Supply Chains** -- a **network** that forms suppliers to ensure it has all the resources it requires to produce and distribute a certain good or services to customer. **Engineering Design** -- is a series of steps that engineers follow to come up with solution to a problem. **Engineering Designer (Product Designer)** **Steps of the Engineering Design Process** 1. **Define the Problem** 4**. Brainstorm Solutions** 7**. Build a Prototype** 2. **Do Background Research** 5**. Choose the Best Solution** 8**. Test and Redesign** 3. **Specify Requirements** 6**. Develop the Solution** 9**. Communicate Result** **Marketing** -- it is the process by which companies engage customers, **build strong customer relationships**, and create customer value in order to capture value from customer in return. **Marketing Process** **Understanding the Marketing and Customer Demands** - **Needs** -- the basic human requirements that are needed to survive. - **Wants** -- the desire for products or services that are not necessary, but which consumer wish for. - **Demands** -- the desire of consumer to purchase products or services at a given price. **Market Offerings --** the desire for products or services that are not necessary, but which **consumer wish for**. **Exchange** -- is the act of obtaining a desired object from someone by **offering something in return**. **Markets --** is the **set of actual and potential buyers** of a product or services.  **Market Intermediaries (Distribution Intermediaries)** -- acting as **bridge** between manufacturers and consumer in product distribution. **Retailer, Wholesaler, Agents and Brokers.** **Marketing Management Orientation --** can be defined as the process that helps in identifying and **selecting the appropriate strategies** for managing customer relationships. - **Production Concept** -- is basically about getting **products out in the market** as soon as possible to maximize the chances of consumers buying them. - **Product Concept** -- is the idea that consumers will favor the **right products** that offer the most quality, performance, and innovative features. - **Selling Concept** -- it is the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale **selling** and promotion effort. - **Marketing Concept** -- it is a process of **determining the strategies** and tactics necessary to achieve organizational goals. - **Social Marketing Concept** -- it is the idea that a company's **marketing decisions** should consider consumer wants, the company's requirements, consumers' long-run interests, and society's long-run interests. **Societal Marketing Concept**