PRODUCT

PRODUCT

THE TANGIBLE GOOD OR THE

INTAGIBLE SERVICE THAT THE
ENTERPRISE OFFERS TO ITS
CUSTOMERS IN ORDER TO
SATISFY THEIR NEEDS AND TO
PRODUCE THEIR EXPECTED
RESULTS
GENERAL
TYPES OF
PRODUCT
1. BREAKTHROUGH PRODUCT
Offer completely new
performance benefits.
May double the performance
at half the cost
May be much more
convenient and easy to use
BREAKTHROUGH PRODUCTS
2. DIFFERENTIATED PRODUCTS
Try to claim new space in the mind of
the customer different from spaces
occupied by existing products
The performance benefits may be
close to existing products but there
would be additional benefits on
special aspects of products
3. COPYCAT PRODUCTS

Will not make much

impression on the consumer’s
mind
Offering more physical
shelves, lower prices, easier
access, promotional freebies
Asia Brewery versus San Miguel
XIOMI VERSUS APPLE
XIOMI VERSUS MACBOOK OF APPLE
 4. NICHE PRODUCTS
Do not intend to compete
with the giants
They are lower reach, lower
visibility, lower prices and
lower top of mind
Niche Products Examples

Organic food- more expensive, but

with promise of better quality /
better for environment
Customizable products- choice of
colors or embroidered names on
particular products like hat, fan,
mugs
Organic Coffee
Customized products
PEOPLE
 PEOPLE
they play a crucial role in the
success of th enterprise
the regular contact points between
the enterprise and its market
people distribute, promote, price
and sell products in the most
attractive market places
Four Level of Marketing Efforts of
People:

1. to arouse customer awareness

2. to arouse customer interest
3. to educate customers as they
evaluate their buying choices and
4. to close the sale and deliver the
products
 Organizational Modalities
aside from people this is used to
arouse the interest of customers
1. outsource people from advertising
agencies, call centers, etc.
2. in house capabilities by hiring
market researches, sales people,
website writers etc.
 Consumer Evaluation Process
INITIAL PROCESS MID PROCESS FINAL PROCESS

• Comparison of product • Customers who have • Taste tests

features and product tried the products
pobable results by: before • Physical demo
- Window shopping • Professional • Free trial period
- Internet browsing evaluator's guidebook
- Brochures collection and on competing products • Money-back guarantee
comparison offer
- Asking friends and • Testimonials from
relatives credible endorsers

• Word of mouth • How often others are

feedback seen actually using the
product or services
• Gut reaction
Closing the sale demands that the
product be:

1. AVAILABLE
Availability means that
the enterprise has the
goods or services on hand
Closing the sale demands that the
product be:

2. ACCESSIBLE
means that the customers can
easily get the product from
their usual buying places or the
products can be conveniently
delivered to them.
Closing the sale demands that the
product be:

3. ADEQUATE
means the product meets
the quality and
specifications of the
customer
PROMOTION
 PROMOTION
encompasses all the direct
communication efforts of the
enterprise, such as advertising ,
public relation campaigns,
promotional tours, product
offerings, flyers, websites,
letters etc.
TV commercials
TV commercials
 Effective Promotion Depends on:

1. credibility of the
communicator
2. the message and the medium
of the message
3. the receptiveness of the
audience to all that is being
communicated
in crafting promotion
research who exactly
the target audience
and their profile
PLACE
PLACE
LOCATION
often-recited mantra of
salespeople who want
to have the best access
to their cutomers
 Final Choice of Location Must be Based
on the Following:

1. Image and Location

conditions
- refers to the physical look of a
location, sanitary conditions,
crime ans safety levels, etc.
- reputation of a location is also
important
 Final Choice of Location Must be Based
on the Following:

2. Exact fit to target

customers-
traffic generally
composed of your
target customers
Final Choice of Location Must be Based
on the Following:

3. Clustering of
competitor
-establishment
drawing bigger market
to the location
 Final Choice of Location Must be Based
on the Following:

4. Future area
development
- look for signs of
development
 Final Choice of Location Must be Based
on the Following:

5. Fiscal and Regulatory

requirements
- low tax rates, good governance,
excellent infrastracture and great
public service
PACKAGING
PRICE
 PRICE
Price is the amount of
money that your
customers have to pay
in exchange for your
product or service
 PRICE
 The Product should always be seen as
representing good value for money. This
does not necessarily mean it should be the
cheapest available; one of the main tenets
of the marketing concept is that customers
are usually happy to pay a little more for
something that works really well for them.
 Different pricing
strategies for your
small business to
consider
1. Pricing for market penetration
 As a small business owner, you’re likely looking for ways
to enter the market so that your product becomes more
well-known. Penetration strategies aim to attract buyers
by offering lower prices on goods and services than
competitors.

 For instance, imagine a competitor sells a product for

₱100. You decide to sell the product for ₱97, even if it
means you’re going to take a loss on the sale.

 Penetration pricing can also be risky because it can

result in an initial loss of income for the business.
 2. Economy pricing

 This pricing strategy is a “no-frills” approach that

involves minimizing marketing and production
expenses as much as possible.
 While economy pricing is incredibly useful for large
companies , the technique can be dangerous for
small businesses. Because small businesses lack
the sales volume of larger companies, they may
find it challenging to cut production costs.
 Additionally, as a young company, they may not
have enough brand awareness to forgo custom
 3. Pricing at a premium
 With premium pricing, businesses set costs
higher because they have a unique product
or brand that no one can compete with.
 You should consider using this strategy if
you have a considerable competitive
advantage and know that you can charge a
higher price without being undercut by a
product of similar quality.
 An example of premium pricing is seen in the
 4. Price skimming
 Designed to help businesses maximize sales on
new products and services, price skimming
involves setting rates high during the initial phase
of a product. The company then lowers prices
gradually as competitor goods appear on the
market.
 One of the benefits of price skimming is that it
allows businesses to maximize profits on early
adopters before dropping prices to attract more
price-sensitive consumers.
 5. Psychological pricing

 Psychological pricing refers to techniques that

marketers use to encourage customers to respond
based on emotional impulses, rather than logical ones.
 For example, setting the price of a watch at ₱199 is
proven to attract more consumers than setting it at
₱200, even though the actual difference here is quite
small.
 The goal of psychology pricing is to increase demand
by creating an illusion of enhanced value for the
consumer.
 6. Bundle pricing
 With bundle pricing, small businesses sell
multiple products for a lower rate than
consumers would face if they purchased each
item individually.
 A useful example of this occurs at your local
fast food restaurant where it’s cheaper to buy
a meal than it is to buy each item individually.
 an effective way to reduce inventory
 it can also increase the value perception in
the eyes of your customers
7. Geographical pricing

 Geographical pricing involves

setting a price point based on
the location where it’s sold.
Factors for the changes in prices
include things like taxes, tariffs,
shipping costs, and location-
specific rent.
 8. Promotional pricing
Promotional pricing involves
offering discounts on a particular
product.
Promotional pricing campaigns can
be short-term efforts.
This pricing strategy plays to a
consumer’s fear of missing out.