Product
Every business firm undertakes the function of product selling, though it may or may not be visible. A laundry firm provides the clothes-washing service. This function is similar to product selling which a retailer performs. Firms while selling their products, sell services too which are related to their products. A consumer buys a product because he gets psychological and physical satisfaction from that product.
Thus a seller not only sells his products rather he enters into marketing of such psychological and physical satisfaction. For example, a person while purchasing a product does not bother about the inputs by which that product is manufactured. He is rather interested in the fact as to what utility or satisfaction, he will gain by using that product. In this context, the ideas of George Fisk are worth describing. According to him, “Product is a cluster of psychological satisfaction.”
Unit 1: Product – Definition in Marketing
A product is what a seller has to sell and what a buyer has to buy it satisfies the needs of customers. Customers purchase products because they are capable of realizing some benefits to the purchaser. A marketer can satisfy the needs and wants of his customers by ‘offering something’ in exchange for money. And this ‘offering’ is basically a product. The product is one of the important elements of the 4Ps of the marketing mix. It consists of a bundle of tangible and intangible attributes that satisfies consumers.
Product is an important component in marketing-mix. Other elements of marketing-mix i.e. price, promotion and place are complementary to it. A product is central to the marketing operations in an organization. Most of the time product fails not because of poor quality but because they fail to meet the expectations of the customers.
It is not just a bundle of physical attributes, but a bundle of perceived benefits which satisfy consumer’s needs. Hence, utmost care should be taken to handle product decisions. A bad product not only generates bad name for the firm but also affects negatively the price set for the product, dissuades the channel members and reduces the believability of the promotional measures.
In a narrow sense, “A product is a set of tangible physical attributes in an identifiable form” (W.J. Stanton). But in marketing, product is used in a broader form.
According to W. Alderson “A product is a bundle of utilities consisting of various product features and accompanying services”.
According to Philip Kotler “A product is anything tangible or intangible that can be offered to a market for attention, acquisition use or consumption that might satisfy a need or want”.
Kotler (1994) says the term product covers physical goods, services and a variety of other items that can satisfy human requirements.
A product could also be described as a bundle of physical service and symbolic attributes designed to enhance consumers want satisfaction.
. A product could also be viewed as a set of features, functions and benefits that customers purchase. Products may consist primarily of tangible (physical) attributes or intangible such as those associated with services or some combination of tangible and intangible
According to Cravens, Hills and Woodruff “Product is anything that is potentially valued by a target market for the benefits or satisfactions it provides, including objects, services, organizations, places people and ideas”.
From the above definitions, it is clear that product has the want satisfying attributes which drive a customer to purchase the product. It is nothing but a package of problem solving devices and is something more than a physical product. This is because a product encompasses a number of social and psychological attributes and other intangible factors which provide satisfaction to the consumer.
Products can be anything. It can be physical product (e.g. fan, refrigerator, etc.), service (e.g. haircuts, laundry, etc.), place (e.g. Zuma rock, Delhi etc.), person (e.g. Late MKO Abiola, etc.), Organization (e.g. Gab Technologies, ASSURE, etc.) and idea (e.g. Family Planning, safe driving etc.).
Alderson defines, “A product is a bundle of utilities consisting of various product features and accompanying services”.
Stanton defines, “A product is a set of tangible and intangible attributes, including packaging, colour, price, manufacturer’s and retailer’s services, which the buyer may accept as offering satisfaction or wants or needs”.
According to Philip Kotler, “A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organization and ideas”.
Unit 2: Product – Concept
Product refers to a good or service that satisfies the needs and wants of customers. It is offered in the market by an organization to earn revenue by meeting the requirements of customers. Product is an asset of an organization and referred as the backbone of marketing mix.
According to Peter Drucker, “Suppliers and especially manufacturers have market power because they have information about a product or a service that the customer does not and cannot have, and does need if he can trust the brand. This explains the profitability of brands.”
It is very important for an organization to understand the needs of customers. For example, some customers use mobile phones for talking; whereas, some use mobile phones for talking as well as business purposes, such as teleconferencing. Needs of the customers depend on their purchasing power.
For example, a customer whose basic need is surfing over the Internet may opt for a simple computer; whereas, a software engineer may need a high configuration computer. Therefore, when the level of need increases then the level of product also increases.
Unit 3: Product – Features of a Product
i. Tangibility:
Products are tangible in nature, customers can touch, seen or feel a products. For example, car, book, computer etc.
ii. Intangible Attributes:
Service products are intangible in nature, services like, consultancy, banking, insurance etc. The product may be combination of both tangible and intangible attributes like restaurants, transportation, in case of a computer it is a tangible product, but when we will talk of its free service provided by dealer, then the product is not only a tangible item but also an intangible one.
iii. Associated Attributes:
The attributes associated with product may be, brand, packaging, warranty, guarantee, after sales services etc.
iv. Exchange Value:
Irrespective of the fact that whether the product is tangible or intangible, it should be capable of being exchanged between buyer and seller for a mutually agreed price.
v. Customer Satisfaction:
A product satisfies the customer needs and wants of customers, value of products is also determined by the level of satisfaction given by a product after purchase.
Unit 4: Product – Characteristics of Product
- It can be a single commodity or a service; a group of commodities or a group of services; a product service combination, or even a combination of several products and services.
- Its meaning is determined by the needs and desires of the consumer. The purpose of a product is to satisfy some need of the consumers. The buyers purchase problem-solving and time for creativity when they purchase a computer system.
- It may be durable such as those that are expected to deliver a stream of satisfaction over a period of time,
- Products may be luxuries which might be needed as a symbol of prestige and status such as car, a well- furnished bungalow in a posh colony or necessities which are needed to keep the body and soul together, such as bread, milk, sugar, etc.
- It may be an agricultural, mineral, forest or semi-manufactured or manufactured product.
Unit 5: The Product Mix
The product mix is a combination of products manufactured or sold by the same organization. Generally companies offer an assortment of related or unrelated products to the markets instead of focusing on a single product to strengthen their presence in the market and increase profitability.
Smaller or medium firms usually offer products that are related to each other while bigger ones go for large scale diversification.
For example- Ayur Herbals, a comparatively smaller enterprise basically deals with cosmetics and beauty products while giants like Reliance group and Tata industries have their presence in varied fields like telecom, processed food, consumer goods, etc.
Dealing with multiple products enables a firm to expand its customer base and spread risk among its various offerings. The product mix includes both product lines and product items.
(i) Product Line:
Product line is a group of products that are closely related either because they satisfy a class of need, or used together, are sold to the same customer group, are marketed through the same types of outlets, or fall within given price ranges or that are considered a unit because of marketing, technical, or end-use considerations. For example, The Sunsilk range of shampoos and conditioners constitute a product line.
(ii) Product Item:
It is a distinct unit within the product line that is separate from others on basis of colour, size, price or other attributes. For example, Sunsilk Thick and Long shampoo is a product unit distinguishable from other items in the product range.
Structure of Product Mix:
- Width:
Width of the product mix means the number of different product lines found within the company. Thus, breadth is measured by the number of product lines carried. For example, Bajaj group has a number of subsidiaries under it producing bulbs, fluorescent lights, mixers and grinders, toasters, motorcycles, pressure cookers and a host of other products. - Depth:
Depth of the product mix refers to the average number of items offered by the company within each product line. It is measured by assortment of sizes, colours, models, prices and quality offered within each product line. For instance, Hindustan Unilever offers a number of variants like Lux Fresh Splash, Strawberry and cream, Peach and cream, Sandal and cream, etc. within the product line Lux soaps. - Consistency:
The consistency of product mix points out how closely related the various product lines are in terms of consumer behaviour, production requirements, distribution channels or in some other way. For example, the products produced by the General Electric Company have an overall consistency in that most products involve electricity in one way or the other.
According to Kotler, all three dimensions of product mix have a market rationale. By increasing the width of the product mix the company hopes to capitalise on its good reputation and skills in present markets.
By increasing the depth of its product mix, the company hopes to entice the patronage of buyers of widely differing tastes and needs. By increasing the consistency of its product mix, the company hopes to acquire an unparalleled reputation in a particular area of endeavour.
Unit 6: Product Life Cycle
Product life cycle connotes the stages that a products passes through from idea generation (conception) to the time when the product ceases to exist (extinction, decline or death). That a product has a cycle mean:
a. products have a shorter life span;
b. each cycle stage a product passes through possesses peculiar features or characteristics;
c. products succeed and fail at different levels and cycles due to various reasons;
d. that different marketing strategies and techniques are required to resuscitate existence at a different level or cycle.
Stage/Cycle 1 – Birth/Introduction Stage:
This is when an organization brings to fore or gives birth to a business idea or introduces and produces a product into the market, e.g. the time a school proprietor opens a premises for schooling or for enrolment of students.
Stage/Cycle 2 – Growth stage:
This is the stage when a business or product is getting a kind of stability or recognition by the customers or clients. At this stage, many people are getting to know about the products, e.g. the time when the student enrolment population of the school begins to rise steadily due to recognition and stability.
Stage/Cycle 3 – Maturity stage:
This is the stage of ‘explosion’ i.e. when the product or service has become a household item or product. At this stage, the business has expanded and everybody wants to associate with their product or service, e.g. the time every parent wants their child or children to be enrolled in that school.
Stage /Cycle 4 – Decline stage:
This is the stage when awareness, fame and popularity of a business, product or services begins to come down or reduce gradually and if care and caution is not taken may eventually cease to exist.
Marketing strategy at each product level
1. Introductory/Birth Stage
The use of promotion elements such as: advertising, personal selling, sales promotion and publicity, building adequate distribution strategy to support growth and development. Appropriate pricing, accessibility, availability and affordability of product.
2. Growth Stage
Need to search for other target market, aggressive campaign, employ capable hands, training of personnel, giving room for criticism, avoiding pride, use of mass media for public enlightenment, lowering price etc.
3. Maturity Stage
Market modification, product modification and repackaging, marketing mix modification, retain and enhance customer loyalty, media enlightenment, avoid arrogance and pride, avoid extravagant spending, accessibility and availability.
4. Decline Stage
Product repackaging, public enlightenment, diversification of business, change of business identity, embark on marketing research for business modification etc.
Unit 7: Product – Elements of Production Decisions
In decisions on producing or providing products and services in the international market it is essential that the production of the product or service is well planned and coordinated, both within and with other functional area of the firm, particularly marketing.
The main elements to consider are the production process itself, specifications, culture, the physical product, packaging, labelling, branding, warranty and service.
Production Process:
The key question is, can we ensure continuity of supply? In manufactured products this may include decisions on the type of manufacturing process – artisanal, job, batch, flow line or group technology. However in many agricultural commodities factors like seasonality, perishability and supply and demand have to be taken into consideration.
Quantity and quality of horticultural crops are affected by a number of things. These include input supplies (or lack of them), finance and credit availability, variety (choice), sowing dates, product range and investment advice. Many of these items will be catered for in the contract of supply.
Specification:
Specification is very important in agricultural products. Some markets will not take produce unless it is within their specification. Specifications are often set by the customer, but agents, standard authorities (like the EU or ITC Geneva) and trade associations can be useful sources.
Culture:
Product packaging, labeling, physical characteristics and marketing have to adapt to the cultural requirements when necessary. Religion, values, aesthetics, language and material culture all affect production decisions.
Physical Product:
The physical product is made up of a variety of elements. These elements include the physical product and the subjective image of the product. Consumers are looking for benefits and these must be conveyed in the total product package.
Physical characteristics include range, shape, size, color, quality, quantity and compatibility. Subjective attributes are determined by advertising, self-image, labelling and packaging. In manufacturing or selling produce, cognisance has to be taken of cost and country legal requirements.
Again a number of these characteristics is governed by the customer or agent. For example, in beef products sold to the EU there are very strict quality requirements to be observed. In fish products, the Japanese demand more “exotic” types than, say, would be sold in the UK.
None of the dried fish products produced by the Zambians on Lake Kariba, and sold into the Lusaka market, would ever pass the hygiene laws if sold internationally. In sophisticated markets like seeds, the variety and range is so large that constant watch has to be kept on the new strains and varieties in order to be competitive.
Packaging:
Packaging serves many purposes. It protects the product from damage which could be incurred in handling and transportation and also has a promotional aspect. It can be very expensive.
Size, unit type, weight and volume are very important in packaging. For aircraft cargo the package needs to be light but strong, for sea cargo containers are often the best form. Costs of packaging have always to be weighed against the advantage gained by it.
Increasingly, environmental aspects are coming into play. Packaging which is non-degradable plastic, for example is less in demanded. Biodegradable, recyclable, reusable packaging is now the order of the day. This can be both expensive and demanding for many developing countries.
Labelling:
Labelling not only serves to express the contents of the product, but may be promotional (symbols for example Cashel Valley Zimbabwe; HJ Heinz, Africafe, Tanzania). The EU is now putting very stringent regulations in force on labelling, even to the degree that the pesticides and insecticides used on horticultural produce have to be listed.
This could be very demanding for producers, especially small scale, ones where production techniques may not be standardised. Government labelling regulations vary from country to country. Bar codes are not widespread in Africa, but do assist in stock control.
Unit 8: Product Development
The entire product development process is characterized by a number of factors which complicate its conduct. The first is that all functional units of the enterprise are involved at various points, and many of them throughout the entire process. They must be carefully mobilized and their natural resistance to cooperative action overcomes.
Second, many different types of activity must be carried on concurrently. Practically all of these are necessary prerequisites to later activities. Thus, there is an acute problem of timing, requiring the establishment of target dates and follow-up to determine progress.
For products that require a substantial amount of technical research and development work, the period from the original concept of the idea until commercialization is typically five to ten years.
Third, is the need for several check points at which the project is considered in all of its aspects, and decisions are reached—whether it should be abandoned, put on the shelf, or continued at a given rate of work?
There is no magic number of such points, although the most obvious occur at:
1. Preliminary screening of new-product ideas.
2. The time substantial amounts of expenditures are authorized for research and development.
3. Authorization for prototype manufacture and market or use testing.
4. The decision regarding full-scale manufacture and marketing.
The process of reviewing the project in its manifold technical and economic aspects at each of these check points becomes increasingly more detailed and thorough as larger and larger amounts of company resources must be committed by decisions to continue it.
New products that are quite similar to the present line in production and selling characteristics will not require a process of development so elaborate or as long as those that are more alien to the established knowledge and know-how of the company organization.
The nature of these complicating factors indicates the desirability of systematizing the search for new products. While the appropriate elements of a product development system would vary from one firm to another, certain activities are basic to the process itself.
These include at least the following phases:
1. Generating new-product ideas.
2. Preliminary appraisal of new product ideas and selection of projects.
3. Product and market research.
4. Process research.
5. Prototype testing in production and marketing.
6. Commercialization.
- Generating New-Product Ideas:
It is almost a truism that new product ideas should match the capabilities of the enterprise and be generated in sufficient number to present a real choice of opportunities. Both internal (e.g. research and development department) and external sources (customers’ needs through market survey, competitors, etc) should be consulted. - Preliminary Appraisal:
This phase has two major purposes. The first is to eliminate ideas that are clearly unworthy of further consideration. The second is to select from among the remainder those with enough promise to warrant exploratory work by technical research.
Great reliance is usually placed on the experience and judgment of executives in conducting the screening process. Because of the multiplicity of issues which affect the desirability of pursuing any specific new-product idea, it is often useful to develop a checklist of questions to be answered.
Major considerations in the appraisal of a new-product idea usually include expected profit potential, the competitive situation, the general adaptability of the company to the new product, and the scale of investment that would be necessary in relation to the funds the company has available.
Marketing considerations include the approximate size of the market, the trends operating within it, marketing methods that would be necessary for successful sale, price structures, and so forth.
- Product and Market Research:
This phase includes the technical, economic, and market research carried on after an idea has been selected as a project after the preliminary appraisal. The amount of technical research necessary will vary greatly, depending on the difficulties involved in achieving a satisfactory product. The more similar the new product is to those currently being manufactured, the less likely is the need for significant amounts of technical work.
During this phase, the physical properties of the new product are determined, small quantities are prepared in the laboratory, research on possible uses is initiated, preliminary work on patents starts, and preliminary estimates of production costs are made.
It is usually advisable to prepare a study of the economic possibilities of the new product at this time which would seek answers to such questions as:
a. What is the precise market or segment of the market in which the new product promises the greatest benefit to users?
b. How much effort will be needed to generate acceptable revenue, and how much will it cost?
c. How much new investment must customers make in order to use the new product?
d. How much change must customer firms make in their present production techniques and routines to use it?
e. Have customers got the technical and application skills needed to use the new product?
f. How many people in the typical customer firm must be convinced before a sale can be made and how hard are they to reach?
g. How solid are relations between the typical customer and his present supplier?
h. What buying motivation can we offer the customer, such as reduction in cost, an increase in attractiveness and volume of the end product, or possible increase in its price?
i. What risks will the user of the new product incur?
j. How fast will any information we may supply permeate the typical customer firm?
k. Are there any built-in customer roadblocks to trying or adopting the new product?
4. Process Research:
In point of time, this phase may overlap the preceding one as the technical group begins to investigate the most feasible way of producing the new product and developing information needed for patent application.
The best way to test various manufacturing techniques may be to build a pilot plant and produce the product in small quantities. Quality control problems are also investigated during this phase.
5. Prototype Testing:
With modest amounts of the product available, market development personnel can begin field testing with a selected group of customers who agree to cooperate, often in return for assurances of preferential treatment if the product proves satisfactory.
All information gathered from field evaluations is relayed back to the technical group who review it for clues to possible flaws in product design.
Further research might be recommended if information seems inadequate, further technical work might be authorized if serious product defects have been discovered, or the project might be abandoned.
If continuance of the project is recommended, larger field tests would be undertaken that would more nearly approximate conditions of actual marketing. The regular sales organization would begin familiarising its members with the product, and promotional strategy would be worked out along with decisions concerning selling methods. It also would be necessary about this time to choose a brand name for the product and determine package design.
The makers of certain kinds of industrial materials and equipment face legal hurdles in introducing new products. For example, before the producer of a chemical used in medicines can market it, he must gain approval of the Food and Drug Administration by supplying evidence that it will do what he says it will do, and will have no more than allowable toxic side effects. In order to gain clearance, he must submit the results of approved independent clinical tests to satisfy the Administration.
6. Commercialization:
New products approved for commercialization enter the final phase of the development process. During the period required to get into full- scale production various activities, such as package design, promotional literature, and advertising copy can be completed.
Depending on the similarity of the new product to present products and its estimated market potential, it might be assigned to an existing division, to a new division specifically established for it, or to a new enterprise owned wholly or partially by the developing company.
Unit 9: Classification of Products
Traditionally, products can be classified and grouped into two, these are:
(a) Industrial products/goods
(b) Consumer products/goods
Each of these two groups also has different categories based on several factors.
(a) lndustrial/organisational
These are products which contribute directly or indirectly to production of other products. These types of products are procured by organizations to be used in producing other products. It is also known as business-to-business products. . ,
(i) Classification/Types of Industrial Products
Industrial products can be classified and grouped as below:
i. installations;
ii. accessory equipment;
iii. component parts;
iv, raw materials;
v. supplies;
vi. business service.
(i) Installations:
These products are known as major capital goods. Ordinarily, installations are customized, expensive and purchased infrequently. They are specialty products. Examples include; buildings, laboratories etc. Their selling process is typically complex, highly technical and challenging, requires professionalism and expertise.
(ii) Accessories:
These are shorter-lived than installations. They are standardized products which are procured more frequently than installations. Examples include products such as portable drills, handset, computer, photocopiers. These products are considered capital intensive and customers depreciate their cost over several years. Buyers do not necessarily need special technical expertise intervention during procurement process.
iii. Raw materials:
These products are synonymous to component parts and materials ¡n that they actually become part of the buyers’ final products. Examples include farm products such as beef, cotton, eggs, milk, poultry and natural products such as coal, copper, iron ore etc. they are unprocessed products which become part of a company’s finished products.
iv. Component parts/materials:
These are already processed products or those that need a slight processing to be ready for assembly within the finished products. They represent finished business products of a producer A, which became part of the final product of another producer B. Examples include: textiles, paper pulp, chemicals onions, tyres, etc, and many other products are component parts/materials used in the production/manufacturing of other products.
v. Supplies:
These are products that are used in support of business operations but are not part of the finished products. They are frequently purchased, inexpensive need no technical expertise, standardized. They are regular expenses that a business establishment incurs daily. Examples include paper, paper clips, pencil, biro, eraser, calculator, etc. Supplies are sometimes known as MRO products because they are further sub-divided into three units
(a) maintenance items e.g. brooms, filters;
(b) repair items e.g. nuts and bolts used in repairing equipment;
(c) operating supplies e.g. fax paper and pencils.
vi. Business to business:
This category includes the physical or tangible products that organizations procure. to facilitate and enhance their production and operating processes. Examples include: financial services, leasing and renting, insurance, security, legal advice etc. price is a fundamental factor which determines decision making of business-to-business products.
(b) Consumer Products:
These are products which are consumed immediately by the customer. Their life-span of consumption is shorter. They are frequently procure, less expensive, need no special technical expertise intervention.
Classification of Consumer Products
Consumer products can be grouped as below:
i. Convenience products
ii. Shopping products
¡ii. Specialty products
iv. Unsought
v. Emergency
vi. Impulse
(i) Convenience products:
A convenience products are goods arid services that consumer purchase conveniently, frequently, immediately and with minimal efforts. Consumers rarely go to competing or expensive stores or compare price and quality when procuring convenience products. Examples include: milk, butter, toothpaste, bread, soap etc. They are common items that can be bought in the open market or the street. They are widely distributed.
(ii) Shopping products:
These are more expensive than convenience products and the decision is ¡important. Consumers spend more time and extra effort in collating vital data that could aid and assist them in buying decision. Information on brand, prices, features, place of manufacturing, durability etc. Examples includes: home appliances, furniture, expensive/designer shoes and clothes, jewelries and gold, perfume, wrist-watches etc. These products are not commonly patronised as convenient products. They are expensive in term of brand, quality and price to convenience products.
(iii) Specialty products:
Here, consumers favour a particular brand or attaché great importance to a particular brand that it would not buy a competing band except the favourite one. The products invariably form part of consumers’ image and personality and identity, e.g. Italian shoe and belt, Nokia products, etc
(iv) Unsought products:
These are unknown products/accidental product which consumers do not prepare to purchase but only come across to fulfill one of the reasons for holding money (speculative motive). Consumers do not seek out unsought products until they come across them through advertising, sales promotion, exhibitions and trade fairs etc. Examples include: smoke detectors, agro allied products, snake killers etc.
(v) Emergency products:
These are products that are procured when there is urgent need for them either as a result of natural occurrences such as cold, hot, change in weather climate etc. Examples include raining boots, cardigan, warmer, umbrella, rain coat etc.
(vi) lmpulse products:
They are products that consumers procure without any planning or search effort. They are often found ¡n places because consumers rarely seek out for them. Examples include: Newspaper and magazines, popcorn, roasted ground nuts etc.
Unit 10: Difference between Goods and Services
(i) Meaning of Goods
Student should note that the term ‘goods’ is not the plural form of the words ‘good’. Goods can be described as an economics or business term that connote objects, devices or things that are often interchangeably used as products.
For instance, let us examine the definition of product as put by (Kotler 1994)… the term product covers physical goods services and a variety of other items that can satisfy human requirements.”
(ii) Meaning of Services
According to (Kotler 1988) service ¡s any act or performance that one party can offer to another that is essentially intangible and does not result in ownership of anything. Its production may or may not be tied to a physical product.
(iii) Differences between goods and services
i. Goods are testable while services are not.
ii. Goods can be preserved or stored in inventory while services cannot be stored.
iii. Consumption of goods can be delayed or postponed while services are consumed immediately.
Features/Characteristics of Services
i. Perishability: The value of service exists only at the point when customer seeks for it. e.g. a patient who consults for medical service.
ii. Variability: Services are vary and are anchored on who provides them, where, when, how and why they are performed.
iii. Inseparability: Consumption of services is immediate hence, the service provider and the consumer cannot be detached.
iv. Intangibility: Services cannot be seen, held or smell. It is not physical and cannot be tasted.
Classification of Services
¡. Classification by buyer: household and industrial buyer
ii. Classification by seller: private, noncommercial and public owned companies.
iii. Classification by form of regulation: extensive control service near extensive control or unregulated services.
Unit 11: Importance of Product
- Central Point for All Marketing Activities:
Product is the foundation of all the marketing activities such as, selling, purchasing, advertisement, distribution, sale promotion, etc. It is the product which is the vehicle of profitability for the business. - Starting Point of Planning:
The starting point of any marketing programme is the product. Planning for all marketing activities such as distribution, price, sales promotion, advertising, etc. is made on the basis of the nature, quality and the demand for the product. Product policies decide all other policies. - Product is an End:
The main objective of all marketing activities is to satisfy the customers. Various policies and techniques are formulated to provide the customers benefits, utilities and satisfactions through the product. Thus, product is the means for satisfaction of customers. The producer must insist on the quality and functionality of the product so that it may satisfy the customer’s needs. - Product is Indispensable:
Product is a must for marketing activities. All marketing activities are done for the satisfaction of customer. The producers must know their customers and their needs. They should also know their product and its qualities.
The product must contain the qualities which can satisfy the customers, should make continuous and sincere efforts to know their product through marketing research and planning and to improve it wherever it is lacking.
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