Products

and
Services
 Product
 Usually termed as good, commodity, service, article, or an
object
 “Product is anything that can be offered to someone to satisfy a
need or a want.” - Philip Kotler
 “Product is complex of tangible and intangible attributes,
including packaging, colour, price, prestige, and services, that
satisfy needs and wants of people.” - William Stanton
 “Product is a bundle of utilities, consisting of various product
features and accompanying services.” - W. Alderson
 Product
 Product is a vehicle or medium that delivers service to
customers.
 Product is a bundle of benefits-physical and psychological- that
marketer wants to offer, or a bundle of expectations that
consumers want to fulfil.
* Physical product is just a vehicle or medium that offer
services, benefits, and satisfaction to us.
Elements of a product:
 1. Core Product:
- Core product includes basic contents, benefits, qualities, or utilities.
 2. Product-related Features:
They include colour, branding, packing, labelling, and varieties.
 3. Product-related Services:
They include after-sales services, installation, guarantee and
warrantee, free home delivery, free repairing, and so forth.
Types of Product:

Consumer Products
Industrial Products
Consumer Products:
 used by ultimate consumers or households and
they can be used without further commercial and
engineering processes
Types of Consumer Products

Convenient Products
 Improve or enhance users’ convenience
 Are used in a day-to-day life
 Frequently required and can be easily purchased
Types of Consumer Products

Shopping Products
 Require special time and shopping efforts
 Purchased purposefully from special shops or markets
 Quality, price, brand, fashion, style, getup, colour, etc., are
important criteria to be considered
 To be chosen among various alternatives or varieties
Types of Consumer Products

Durable Products
 Can last for a longer period and can be repeatedly used by one
or more persons
 Brand, company image, price, qualities,, and after-sales
services are important aspects the customers consider while
buying these products
Types of Consumer Products
Non-durable Products:
 Have short life
 Must be consumed within short time after they are
manufactured
 They are used for once
 They are also known as consumables
Types of Consumer Products
Services
Industrial Products:
 used as the inputs by manufacturing firms for
further processes on the products, or
manufacturing other products
 Service
 Are deeds, processes, and performances
 American Marketing Association
- “activities, benefits, or satisfactions which are offered
for sale, or provided in connection with the sale of
goods”.
 Considered as pure intangibles - capable of providing satisfaction to the
customer and can be marketed like tangible products
 Involves some interaction between the customer and the service provider,
and does not result in a transfer of ownership
 Service
 Are deeds, processes, and performances
 American Marketing Association
- “activities, benefits, or satisfactions which are offered
for sale, or provided in connection with the sale of
goods”.
 Considered as pure intangibles - capable of providing satisfaction to the
customer and can be marketed like tangible products
 Involves some interaction between the customer and the service provider,
and does not result in a transfer of ownership
Characteristics:
Intangibility:
 Services are performances or actions rather than objects,
they cannot be seen, felt, tasted, or touched in the same
manner that we can sense tangible goods.
Characteristics:
Inseparability
 Service cannot be separated from the person or firm providing
it
 Services are typically produced and consumed at the same
time.
 Relationship between production and consumption
Characteristics:
Heterogeneity
 No two services will be precisely alike
 Standardization a very difficult task to achieve
Characteristics:
Perishability:
 Services cannot be saved, stored, resold, or returned
 Perish in the absence of consumption
Characteristics:
No Transfer of Ownership:
 We never own it
 The payment is not for purchase, but only for the use or access
to or for hire of items or facilities; and transfer of ownership
does not take place.
 BASIS FOR COMPARISON GOODS SERVICES

Meaning Goods are the material items that can be Services are amenities, facilities, benefits
seen, touched or felt and are ready for sale or help provided by other people.
to the customers.

Nature Tangible Intangible

Transfer of ownership Yes No

Evaluation Very simple and easy Complicated

Return Goods can be returned. Services cannot be returned back once

they are provided.

Separable Yes, goods can be separated from the No, services cannot be separated from the
seller. service provider.

Variability Identical Diversified

Storage Goods can be stored for use in future or Services cannot be stored.
multiple use.

Production and Consumption There is a time lag between production Production and Consumption of services
and consumption of goods. occurs simultaneously.
Effective Promotional Presentations
 Contest
- don't even require a purchase
- The idea is to promote your brand and put your logo and name in front of the
public rather than make money through a hard-sell campaign
 Social Media
- a way to promote products and services in a more relaxed environment
- direct marketing at its best
Effective Promotional Presentations
 Mail Order Marketing
- Offer a free product or service in exchange for the information. These are customers who are
already familiar with your company and represent the target audience you want to market your
new products to.
 Product Giveaways and Samples
- Allowing potential customers to sample a product
- methods used to introduce new food and household products
Effective Promotional Presentations
 Point-of-Sale Promotion and End-Cap Marketing
- ways of selling product and promoting items in stores.
- The idea behind this promotional strategy is convenience and impulse
End cap - sits at the end of aisles in grocery stores, features products a store wants to promote or
move quickly. This product is positioned so it is easily accessible to the customer.
Point-of-sale is a way to promote new products or products a store needs to move. These items are
placed near the checkout in the store and are often purchased by consumers on impulse as they
wait to be checked out.
Effective Promotional Presentations
 Customer Referral Incentive Program
- A way to encourage current customers to refer new customers to your store.
- Free products, big discounts and cash rewards are some of the incentives you can use
- This is a promotional strategy that leverages your customer base as a sales force.
 Causes and Charity
- Promoting your products while supporting a cause can be an effective promotional strategy.
- Giving customers a sense of being a part of something larger simply by using products they might
use anyway creates a win/win situation.
 Effective Promotional Presentations
 Branded Promotional Gifts
- Giving away functional branded gifts can be a more effective promotional move than
handing out simple business cards.
- Gifts you can give your customers that they may use, which keeps your business in
plain sight rather than in the trash or in a drawer with other business cards the
customer may not look at.
 Customer Appreciation Events
- An in-store customer appreciation event with free refreshments and door prizes will
draw customers into the store.
- Emphasis on the appreciation part of the event, with no purchase of anything
necessary
- Setting up convenient product displays before the launch of the event will ensure the products
you want to promote are highly visible when the customers arrive
 Effective Promotional Presentations
 After-Sale Customer Surveys
- Contacting customers by telephone or through the mail after a sale
- a promotional strategy that puts customer satisfaction first while leaving the
door open for a promotional opportunity.
- serves the dual purpose of promoting your company as one that cares what
the customer thinks and
- one that is always striving to provide the best service and product.
What is Business Process Outsourcing (BPO)?

 is a subset of outsourcing that involves contracting third-party

service providers for various business-related operations and
responsibilities
 is a business practice in which one organization hires another
company to perform a task (i.e., process) that the hiring
organization requires for its own business to successfully
operate.
BPO Set-up in the Philippines
 Philippines is the BPO capital of the world
 started by Accenture in the year 1992
 Legal requirements
 License to carry out business
 Technical and infrastructural requirements
 Staff
 Budget
 Long term goal
Trends in BPO
 Better Information Security
- Making security a top priority
 Strategic balanced-shore outsourcing
- provide more flexible operations
 Blogging and social media outsourcing
 Cloud Computing Software
Types of Outsourcing
 Onshore – within the country
 Offshore – jobs done from far-off country
 Nearshore – nearby countries