MGT 211 Introduction to Business Lecture 27 Product

MGT 211 Introduction to Business Lecture 27

Product n Anything that can be offered for sale by an organization. n Product can be: Tangible n Intangible n n Benefits are basic features of the product. n Every product has a set of features to identify itself.

Classification of Products n Products are classified in various ways. Mainly, these are divided into: Consumer Products n Industrial Products n

Categories of consumer goods n Convenience goods n Goods which are convenient to buy for the customer. n Customer has complete awareness of the product. n Customer buy these products frequently.

Categories of consumer goods n Shopping Goods n Specialty goods n For these products, customers have strong brand loyalty.

Industrial Goods n Goods used in the industry. Categories of industrial goods n Capital items n Expense items

Categories of industrial goods n Capital Items n These are long lived and expensive goods. n Sometimes copyrights are purchased. These are also capital goods. n Expense Items n These can be: n n Raw Material Some utility items § Oil § Grease n Some tools

n Product Mix n All those products offered by an organization for sale. n Product Line n Products which are similar to each other.

Steps for Product Development n n Recognition of unsatisfied needs. Idea Generation. Idea Screening. Prototype n Physical shape of the product. n Product Testing n Tests are of two types: n n Laboratory Test. Market Test or Test Marketing. § Product is sold on trial basis.

Steps for Product Development n Commercialization n Product is sold on commercial basis. This concept is also called Mass marketing.