Senior High School

Principles of Marketing
Quarter 2 – Module 2:

Product, Services, and

Experiences

Name:
Grade and Section:
Strand:

Note: Only intermediate paper will be

used.
Strictly no erasure and no back to back.
Answer only. Make your paper neat and
your writing readable. Thank you 
 What I Need to Know

After finishing this module, you are expected to:

• Define the characteristics and highlight the difference amongst products, services
and experiences.
• Discuss the usefulness of product, service and experience.
• Identify and discuss the Product Life Cycle (PLC).
• Apply product, service and experience model to formulate strategies in the
community setting.

What I Know

Directions: Choose the letter of the correct answer. Write the letter that corresponds to
your answer on a separate sheet of paper.

1. Is anything offered for sale by a firm to buyers to satisfy their wants and needs.
a. Events
b. Experience
c. Product
d. Service
2. It includes the brand name, features, packaging and quality level.
a. Actual product
b. Augmented product
c. Consumer product
d. Core product
3. They are goods that are purchased for personal consumption and/ or for
household use.
a. Consumer goods
b. Differentiated goods
c. Industrial goods
d. Undifferentiated goods
4. These are products that are purchased frequently, are usually inexpensive, and do
not require much purchase effort and evaluation.
a. Convenience goods
b. Shopping goods
c. Specialty goods
d. Unsought goods
5. These are goods that require and usually large effort on the part of consumers to
acquire.
a. Convenience goods
b. Shopping goods
c. Specialty goods
d. Unsought goods
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 6. This are consumer products and services that the customer compares carefully on
suitability, quality, price and style.
a. Convenience goods
b. Shopping goods
c. Specialty goods
d. Unsought goods
7. It is an act or performance that one party can offer to another that is essentially
intangible and does not result in any ownership of anything.
a. Events
b. Experiences
c. Product
d. Service
8. It is used in marketing to describe the inability to assess the value gained from
engaging in an activity using any tangible evidence.
a. Inseparability
b. Intangibility
c. Perishability
d. Variability
9. It is used in marketing to describe the way in which service capacity cannot be
stored for sale in the future.
a. Inseparability
b. Intangibility
c. Perishability
d. Variability
10. It represents what buying the product or service will do for the customer.
a. Events
b. Experiences
c. Product
d. Service

Test II: DIRECTION: Write TRUE if the statement is correct and FALSE if it is not.

____________1. Defective packaging may contribute to loss of sales and product

damage.
_____________2. Products have life cycle consisting of four distinct stages;
introduction, growth, maturity and decline.
_____________3. In the introduction stage it begins with a permanent drop of sales.
_____________4. Knowledge of the product life cycle concept may be useful in many
aspects of decision-making in marketing.
_____________5. Examples of services are dental check-up, and haircuts.

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Lesson
Product, Services and
1 Experiences

As you proceed to this module, you will understand the definitions of the different scope of
marketing: product, service and experience, the different classification of products and
product life cycle.
Let us rewind and freshen up your brain by arranging the
marketing vocabulary on our previous lesson. Write your

Look at the following jumbled words. Rearrange the letters to form the correct and proper
word by looking and analyzing the questions below the jumbled words.

1. SEIRTSUDNI __________________________
2. NPSOTGINOII __________________________
3. 3. TAGKEPEESRE __________________________
4. ICSDOMEHAGRP __________________________
5. ENE SKTA __________________________
6. MERSUONC KETARM __________________________
7. PCHIARGOEG __________________________
8. SURSE __________________________
9. ETGART ARMTEK __________________________
10. RSRELLEES __________________________

1. This are business organizations that purchase goods and services for the purpose
of producing other products and services or for use in their production and
operating processes.
2. It is the process of communicating the image of a brand into the minds of
consumers.
3. They are individuals whose positions allow them to screen and/or prevent supplier
representatives and vital product/service information from reaching participants
who perform roles in the organizational buying decisions.
4. It refers to the general characteristics of the population.
5. It involves the purchase of products or services that the organization has never
bought before, or has not purchased for a long period of time.
6. It includes individuals and/or households that purchase products and services for
personal consumption.
7. It divides the market by regions, cities, urban, and rural areas, coastal and central
land masses, by density or areas with low, medium or heavy concentration of
population, or by areas of the country with either relatively temperate or hot
temperatures, among others.
8. They are individuals who usually initiate the organizational buying process after
having identified a specific need in the department.
9. It is the most probable and most logical customers, and may likewise be its
heaviest customers.
10. This are entities that buy goods and services in order to resell them at a profit.

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 What’s New

ANALYZING IMAGES

DIRECTION: Carefully analyze and figure out the pictures below. Identify the different
scope of marketing by writing P-Product, S-Service and EExperience. Write your answer on
the space provided.

1.

____________________

2.

___________________

3.

__________________

4.

__________________

5.

__________________
4
6.

_____________________

7.

____________________

8.

___________________

9.

__________________

5
 10.

_________________

What is It

Product Defined
- is anything offered for sale by a firm to buyers to satisfy their wants and needs.
Products may be take any of the following forms:

1. A physical object like a toy or a kilo of pork;

2. A service like a ferris wheel ride or a dental check-up;
3. A place like London or Boracay;
4. An organization like the Supreme Student Government (SSG) or the Philippine
Marketing Association;
5. A personality like Manny Pacquiao and Kathryn Bernardo.

To maintain the interest of buyers, the physical products are most often provided
with benefits like: (1) quality; (2) reputation of the manufacturer; (3) packaging; (4)
credit; (5) information about the product; (6) warranty; (7) after sales service; and (8)
delivery.

With the foregoing statements, a product may now be defined more specifically, as
follows:

“A product is anything offered for sale by a firm to buyers to satisfy their physical,
social, symbolic, and psychological wants and needs.”

Classification of Products

Products may be classified into two categories: (1) consumer goods; and (2)
industrial goods.

Consumer goods- are those intended for final consumption by consumers. They
may be classified according to: (1) the rate of consumption and tangibility; and (2)
the consumer’s shopping habits.

Rate of Consumption and Tangibility

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 Based on the rate of consumption and tangibility, consumer goods are further
classified as: (1) durable; (2) nondurables; and (3) services.

Durable goods- are tangible goods which normally survive many uses. Examples
are motorbikes, refrigerators and filing cabinets.

Nondurable goods- are tangible products which are consumed in one or a few uses.
Examples are ice cream, toothpicks, and petrol.

Services- are intangible goods like activities, benefits, or satisfaction which are
offered for sale. Examples are entertainment in movie houses and concerts,
transport services, tailoring services, and haircuts.

Consumer’s Shopping Habits

Based on consumer’s shopping habits, consumer goods may be further as: (1)
convenience goods; (2) shopping goods; (3) specialty goods; and (4) unsought goods.

Convenience goods- are those which are purchased with a minimum of effort.
Many of them are readily available in many retail outlets. Examples are soap, bread,
soft drinks and milk.

Shopping goods- are those that are bought only after an effort to compare with
other goods is made. Examples are radio sets, ready-towear suits, cellphones, and
shoes.

Specialty goods- are those that the consumers seek to buy and they are not willing
or they are not able to accept substitutes. Examples are special medicines, jewelry,
and exotic foods like (adobong kamaru) and (isaw).

Unsought goods- are those that are not yet wanted by or are still unknown to the
consumer. Because of the said reasons, consumers use no effort to seek them.
There are two types of unsought goods: (1) the new unsought goods, and (2) the
regularly unsought goods.

New unsought goods- are really new ideas or products that the consumer still have
to know to be motivated to buy. An example is the papaya soap when it was first
introduced. Consumers did not know much about it, so it was not sought.

Regular unsought goods- are those that stay unsought but not unbought forever.
Examples are encyclopedias, educational plans, memorial plans, and life insurance
plans.

Industrial Goods- are those used in the production of other goods. They are
categorized as follows:

1. Installations
2. Accessory equipment
3. Raw materials
4. Component parts and materials
5. Supplies

Installations- This term refers to industrial products with long life, are generally
expensive, and they form part of the major capital equipment of an industrial firm.
Examples are buildings, generators, computers, elevators, and others.

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 Accessory Equipment- These are industrial goods that are used as aids in the
production process. They have a shorter usable life than installations. Examples are hand
tools and lift trucks in factories, fax machines, and desks in offices.
Raw Materials- These are unprocessed goods that will become part of another product.
Raw materials are of two types: (1) farm products; and (2) natural products. Farm products
are those grown by farmers, while natural products are those which occur by nature.
Examples of farm products are palay, tomatoes, eggplant, coconut and milk. Examples of
natural products are fish, lumber, gold, diamond, coal and oil.
Component Part and Materials- These are processed industrial goods that will still be
used and become an actual part of the finished product.
Component materials are exemplified by paper for further processing into printed
magazine, textiles into dresses, and flour into bread. Component parts are exemplified by
tires mounted in motor cars, strings in a violin, and knobs on television.
Supplies- These are items that are used as aids in the operating process but do not
become part of the finished product. Among the examples are pencils, ink, paper clips,
fasteners, and others.
Levels of Products

1. Core or generic product- it represent what the buyer is really buying.

2. Actual or formal product- it represents the design, brand name, and packaging that
delivers the core benefits to the customer.
3. Augmented product- it represents additional services or benefits of the actual
product.

Branding
-Is that marketing action which identifies and helps differentiate the goods or
services of one seller from those of another. A consumer who uses a product and begins to
like it, it will find less difficulty in purchasing the product again if he is provided with a
brand to remember.

Brand- is a name, term, sign, symbol, or design, or a combination of these elements, that
is intended to identify the goods or services of one seller or a group of sellers.
Brand may either be: (1) legally registered; or (2) not legally registered. Legally registered
brands are provided with legal protection called trademark.

Brands, whether legally registered or not, consists of two distinct parts: (1) brand name;
and (2) brand mark.
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Brand Name- This term refers to that part of a brand consisting of words, letters, and/or
numbers that can be vocalized. Examples are Suzuki, UST, Tide, Close-Up, and Hundred
Islands.
Brand Mark- This refers to that part of a brand that appears in the form of a symbol,
design, or distinctive coloring or lettering, and which cannot be vocalized. Examples are
the popular companies like Nike, Starbucks and McDonalds.

Packaging
- refers to all activities involved in designing and producing the container or wrapper
for a product. The container or wrapper is the package. The package may include up to
three levels of material briefly described as follows:

1. The primary package which the product’s immediate container. The 370ml. can
containing Alaska milk is its primary package.
2. The secondary package which protects the primary package. The carton box
containing two dozens of Alaska milk cans is its secondary package.
3. The shipping package which contains the secondary package or packages. It
provides ease of storage, identification, and shipping.

Reasons for Packaging

There are several reasons for packaging products. Among them are:

1. It provides protection to product before and after they are in the possession of the
intended users. Products need to be protected from the harmful effects of outside
elements. Packaging serves to eliminate this problem.
2. It provides convenience to the user. Many products are now neatly packaged which
provide convenience for use just anywhere. The effort exerted from date of purchase
to actual use of the product is greatly diminished.
3. It provides safety. Products like insecticides may cause considerable harm useless
they are contained in suitable packages.
4. It provides economy to both the seller and the user. Buyers have a different quantity
requirements for products. Some will need more in a single purchase, while some will
need less. In any case, purchasing in various quantities is made possible by
packaging.
5. It allows sellers to effectively promote the product. The package can be made to
attract the attention of the prospective buyer and further provide vital information
about the product.

Labeling
- it is the part of the products which provides information about the product and the
manufacturer is called the label. It may be a part of the package, or a tag attached to the
product.

Types of Labels
There are four types of labels

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 1. The brand label- this label identifies the product of brand. Example is the word
“Goodyear” indicated in some tires sold by dealers.
2. The descriptive label- This label provides information about the product; who made
it, where and when it was made, its contents, how it is used, and how to use it
safely.
3. The grade label- This label identifies the product’s judged quality with a letter,
number, or word like “grade A” or premium grade.”
4. The promotional label- This label provides attractive graphics to help promote the
product.

Product Life Cycles

Products, like humans beings, have a life cycle which is referred to as the Product
Life Cycle or PLC. The PLC refers to a product’s sales growth from the beginning to its
peak, followed by a decline and its eventual withdrawal from the market. In more simple
term, PLC is the period between the birth and death of a product.
The PLC consists of four distinct stages: (1) introduction; (2) growth; (3) maturity; (4)
decline. These stages are actually the manifestations of the effects of various forces
affecting the life cycle, namely: (1) consumer demand; (2) competition; (3) government
rulings. These forces are beyond the control of the firm and the influence of its marketing
efforts.

The Introduction Stage

In this stage, the product is introduced to the public. It is generally characterized by the
following:

1. Slow growth of sales;

2. Heavy promotional expenditures in relation to sales;
3. Relatively high prices for the products; and
4. Limited product offerings, like limited variations in sizes, color, and the like.

The Growth Stage

The growth stage in the PLC follows a successful introduction stage. The growth stage is
characterized by the following:

1. Sales start climbing rapidly as distribution increases and the consumers are
persuaded to try the product.
2. The ratio of promotional expenditures to sales decreases. This is due to the rapid
increase in sales but without a corresponding increase in promotional expenses.
3. Prices tend to remain high except when demand stimulation is required and entry of
competitors is discouraged.
4. New forms of the product appear, like new colors, new models, and new sizes.

The Maturity Stage

When the growth in sales down, the maturity stage begins to take over. This stage is
characterized further by the following:

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 1. Sales settle down as the product becomes well-known.
2. Price reductions are used as a tool of competition.
3. Competition is intensified; and 4. The market becomes saturated.

The Decline Stage

The decline stage begins with a permanent drop in sales. The stage is further
characterized by:

1. A pruning of product models and variations to eliminate those not

producing profits.
2. Promotional expenses are reduced; and 3. Plans for phasing out the
product is made.

Service Defined

- is a form of product that consists of activities, benefits, or satisfactions offered for

sale that are essentially intangible and do not result in ownership.

Four major attributes of Service

1. Intangibility- Physical products are tangible. As such, they can be inspected by

consumers prior to purchase. On the other hand, service are intangible. It would,
therefore not be possible to “sample” a lawyer’s legal skills, or a doctor’s ability to
handle a surgical operation before one decides to retain a lawyer or a doctor.

2. Variability- Because services are performed by human beings, no service provider

can render the same service in exactly the same way every single time. A college
professor, when giving the same lecture in two separate sessions, cannot use the
exact words and gestures for both sessions.

3. Inseparability- Because services are rendered by people, the service provider must
be present each and every time the service is provided. Services are rendered and
consumed simultaneously. As a lawyer gives legal advice to a client, legal services are
being “produced”, and simultaneously “consumed” by the client.

4. Perishability- Unconsumed services cannot be stored or warehoused. When a 40-

room boutique hotel with a restaurant on its ground floor operates on a particular
day, unconsumed or unused ingredients for food production, unsold bottles for soda,
or unused coffee beans can be stored, available for use of sale the following day.

Experiences Defined

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 - A product which involves experiential aspects of consumption rather than
utilitarian ones. This type of product allows consumers to engage in fantasies,
feelings and fun and often carries subjective meanings and characteristics. It also
represent what buying the product or services will do for the customer.

- Examples are: students’ field trip in Baguio City, group of friends watched
Showtime at ABS-CBN.

What’s More

Activity No. 1. Identify the different Product Life Cycle (PLC) by reading and understand
the brief explanations below. Write IS-Introduction Stage, GSGrowth Stage, MS-Maturity
Stage, and DS-Decline Stage. Write your answers on the space provided below.

1. The product is new in the market.

2. The product has a stable market share.

3. Consumers have changed their taste or style.

4. Sales begin to grow rapidly.

5. Competitors have entered the market.

6. New products have to be produced by competitors.

7. Promotion is needed to increase the sales and make it aware widely

8. The product becomes very profitable.

9. Limited product offerings, like limited variations in sizes,

colors, and the like.

10. New forms of the product appear like new colors, new models,

and new sizes.

11. Price reductions are used as a tool of competition.

12. Plans for phasing out the product is made.

13. Prices tend to remain high except when demand stimulation is

required and entry of competitors is discouraged.

14. Relatively high prices for the products.

15. Sales settle down the product becomes well-known.

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Activity No. 2 Fill in the blanks by choosing the appropriate word or group of words in
the box. Writer the correct answer on the space provided before the number.
Shopping goods Industrial goods Brand Name
Unsought goods Specialty goods Brand Mark
Brand Labeling Product
Durable goods Packaging Service

___________________1. They are tangible goods which normally survive many

uses.
___________________2. Are those that are bought only after an effort to compare with
other goods is made.
___________________3. Goods that the consumers seek to buy and they are not willing
or they are not able to accept substitutes.
___________________4. Are those that are not yet wanted or are still unknown to the
consumer.
___________________5. Are goods used in the production of other goods.
___________________6. Is a name, term, sign, symbol, or design or a combination of
these elements, that is intended to identify the goods or services of one seller or a
group of sellers.
___________________7. This refers to the part of a brand that appears in the form of a
symbol, design, or distinctive coloring or lettering, and which cannot be vocalized.
___________________8. This term refers to the part of a brand consisting of words,
letters, and/or numbers that can be vocalized.
___________________9. It refers to all activities involved in designing and
producing the container or wrapper for a product.
___________________10. It may be a part of the package, or a tag attached to the
product.

Activity No. 3 Direction: Write TRUE if the statement is correct and FALSE if
it is not.
___________1. Products may be classified into two categories; the consumer
goods and industrial goods.
___________2. Services are tangible goods like activities, benefits, or
satisfactions which are offered for sale.
___________3. Examples of new unsought goods are educational plans,
memorial plans, and life insurance plans.
___________4. Services are industrial goods that are used as aids in the production
process.
___________5. One of the reasons for packaging the products because it provides
protection to product before and after they are in the possession of the intended
users.
___________6. The brand label provides information about the product, who
made the product, where and when it was made, its contents, how it is used,
and how to use it safely.
___________7. The promotional label provides attractive graphics to help promote
the product.
___________8. Branding is that marketing action which identifies and helps
differentiate the goods or services of one seller from those of another.

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___________9. Accessory equipment refers to industrial products with long
life, are generally expensive, and they form part of the major capital
equipment of an industrial firm.
___________10. Raw materials are unprocessed goods that will become part of
another product.

What I Have Learned

The most important elements of the marketing mix is the product. Individually, products
take forms different from one another.
Physical products are often provided with benefits like quality, reputation of the
manufacturer, packaging, credit, information about the product, warranty, after sales
service, and delivery.
Products may be classified as either consumer or industrial goods. Consumer goods may
be further classified according to the rate of consumption and tangibility and the
consumer’s shopping habits. Industrial goods may be categorized as installations,
accessory equipment, raw materials, component parts and materials, supplies, or services.
The product can be a useful variable by making it different from other products. This is
made possible with the use of tools like branding, quality, image, product features,
packaging, location, promotion, innovation, and different service levels. If branding is not
a viable option, licensing offers an attractive alternative.
In selecting a brand, the following must be considered: the brand should suggest
something about the product’s benefits and qualities; it should be easy to pronounce,
recognize, spell, and remember; it should be distinctive; it must be adaptable to additional
product lines; and it must be capable of being legally registered.
There are several conditions favorable to branding although there are cases when
branding is not applicable.
Branding strategies consist of manufacturer branding, reseller branding, mixed branding,
and generic branding.
Packaging is a useful marketing activity because it serves various purposes like providing
protection to products, convenience to the user, safety, economy, and effective promotion
of the product. Good packaging is one that is able to assist in the marketing effort.
The label is that part of the product which provides information about the product and
the manufacturer. Labels may be classified as brand label, descriptive label, grade label,
or promotional label.
Product have life cycle consisting of four distinct stages: introduction, growth, maturity,
and decline.

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 Assessment

Direction: Choose the letter of the correct answer. Write the letter that correspond to your
answer on a separate sheet of paper.

1. This are consumer products and services that the customer compares carefully on
suitability, quality, price and style.
a. Convenience goods
b. Shopping goods
c. Specialty goods
d. Unsought goods
2. It is an act or performance that one party can offer to another that is essentially
intangible and does not result in any ownership of anything. a. Events
b. Experiences
c. Product
d. Service
3. It is used in marketing to describe the inability to assess the value gained from
engaging in an activity using any tangible evidence.
a. Inseparability
b. Intangibility
c. Perishability
d. Variability
4. It is used in marketing to describe the way in which service capacity cannot be
stored for sale in the future.
a. Inseparability
b. Intangibility
c. Perishability
d. Variability
5. It represents what buying the product or service will do for the customer.
a. Events
b. Experiences
c. Product
d. Service
6. Is anything offered for sale by a firm to buyers to satisfy their wants and needs.
a. Events
b. Experience
c. Product
d. Service
7. It includes the brand name, features, packaging and quality level.
a. Actual product
b. Augmented product
c. Consumer product
d. Core product
8. They are goods that are purchased for personal consumption and/ or for household
use.
a. Consumer goods
b. Differentiated goods
c. Industrial goods
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 d. Undifferentiated goods
9. These are products that are purchased frequently, are usually inexpensive, and do
not require much purchase effort and evaluation.
a. Convenience goods
b. Shopping goods
c. Specialty goods
d. Unsought goods
10. These are goods that require and usually large effort on the part of consumers to
acquire.
a. Convenience goods
b. Shopping goods
c. Specialty goods
d. Unsought goods

Test II: Direction: Write TRUE if the statement is correct and FALSE if it is not.

_____________1. In the introduction stage it begins with a permanent drop of sales.

_____________2. Examples of services are dental check-up, and haircuts.
_____________3. Products have life cycle consisting of four distinct stages;
introduction, growth, maturity and decline.
____________4. Defective packaging may contribute to loss of sales and product damage.
_____________5. Knowledge of the product life cycle concept may be useful in many
aspects of decision-making in marketing.

Additional Activities

1. Come up with what you think can be a good brand and slogan for a new energy
drink. This drink is colored blue, has a lightning motif, and promises to boost
energy and sharpen one’s eyesight.

BRAND: _________________________________________________
SLOGAN: ________________________________________________

2. How did you come up with your brand and slogan above? Retrace your steps and
write down exactly how your thinking process led to your selected brand and
slogan above.

Criteria Details Total Points Your Points

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Depth of planning How important are 10
the
identified
elements for
assessing the
brand and slogan

Creativity How impressive are 10

the
proposed brand
elements

Impact How likeable is the 10

brand?
TOTAL 30

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