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Product, Services, and Experiences

What do organizations market?


As consumers, we are most
familiar with the marketing of
goods and services. Other than
these, however, marketing
organizations also market
experiences, ideas , advocacies,
and even personalities.
Marketing Products

Products or goods are physically


tangible items. As such, they are
generally perceivable by the human
senses and can, therefore, be
inspected prior to purchase.
•Credit •Warranty
•Installment •Service
terms •Repairs and
AGUMENTED
•Installation Maintenance
PRODUCT
•Features •Others
•Styling
•Price FORMAL
•Color PRODUCT
•Others

CORE OR
GENERIC
PRODUCT
Product Levels
All products have a core or generic product, which
houses its core or generic function. A product’s core or
generic function can be defined as the purpose for
which the product was created. For example, the core
or generic function of a wristwatch would be ‘’ to tell
the time’’ On the other hand , for automobiles, it
would be ‘’ to transport’’ . However , physical products
cannot be effectively marketed on the sole basis of
their coe or generic function because similar products
have the same core or generic function. All
wristwatches can tell the time , and all automobiles are
capable of transporting people.
Product Levels

It would , therefore, be difficult, if not impossible,


for a marketer to convince consumers to prefer a brand
of wristwatch or automobile over another, if it were to
be marketed solely on its ability to tell time ot to
transport. Product differentiation would not be
possible.
The situation necessitates the creation of a second
product level be to added on to the products core or
generic function. This level includes factors that could
effectively differentiate automobiles manufactured by
one company over those manufactured by others with
the same or generic function. This second level is called
the formal product . Car manufacturers incorporate
unique styling into their automobile models ,utilize
different hood and grill designs, uses various paint
colors , incorporate advanced features , and charge
varying selling prices, among others.
Product Levels

All these are undertaken with one objective in


mind-to differentiate their automobile from
those manufactured by other firms.
It would usually be sufficient for the formal
product of most marketing organizations to
successfully differentiate their product offering
from their competitors. However , certain types
of products/goods, particularly those that are
very expensive and have log service lives, require
a third level; augmented product.
An augmented product is necessary in the case
of products/goods such as condominium
According to Use:
Consumer goods
Industrial Goods

According to Differentiate:
Undifferentiated goods
Differentiated goods

According to Durability:
Products/Goods
Consumables
Semi-Durables
Durables

According to Type:
Convenience goods
Shopping goods
Specialty goods
Unsought goods
According to Use: Consumer and
Industrial Goods
When classified according to use,
products/goods can either be consumer goods
or industrial goods.

Consumer goods are goods that are


purchased for personal consumption and/or
for household use. Examples of these are
instant noodles, biscuits, milk, detergent soap,
shampoo, and other similar items.
According to Use:

On the other hand, industrial goods are


purchased in order to make other goods , to
serve as a raw material or input in the
production of other goods. Typical examples
are aluminum ( used to manufacturer kitchem
equipment and cans) and electronic cables
and wires ( used as electrical conduits for
home appliances) among others.
According to Use:

It would not be possible to say, however , that


a product is always a consumer good or an
industrial good. A good that is ordinarily a
consumer good can also be used as an industrial
good, and vice versa. For example, when a
consumer buys sugar from the supermarket and
uses this sugar to sweeten his/her coffee , the
sugar in this particular case is a consumer good.
However , if the sugar is added to flour, chocolate
syrup, eggs and walnuts to make brownies and
eventually sold, the sugar in this case is an
industrial good,