Bañares, Nikki Scottie V.

BTVTE-3B

Assignment # 8

1. Define the terms: product, commodity and service.

Product

If users and potential users want to utilize it, they must understand why they need it, what benefits they
may obtain from it, and what difference it makes in their life. Advertising and 'branding' are the most
effective ways to achieve this. A product must have a name that people can remember and relate to.
When a product has a name, it becomes a brand. It makes it stand out in a sea of similar-sounding
brands and products. To be relevant and retain an income stream, a product must be adaptable: it must
be able to adjust to changing trends, time, and market segments. A product is the item that is being
sold. A product might be a service or an item. It is feasible in real, virtual, or cyber form. Everything has a
price, and everything has a cost. The market, the quality of the product, the marketing approach, and
the target market all influence the price that can be charged. Each product has a useful life before it
must be replaced, after which it must be re-invented.

Commodity

In commerce, a commodity is a basic good that may be exchanged for other similar commodities of the
same type. Commodities are most commonly utilized as inputs in the creation of other goods and
services. The quality of a product may differ slightly from producer to producer, but it is essentially the
same. When commodities are traded on an exchange, they must also meet certain minimal
requirements, commonly known as a basis grade.

Service

Barbers, doctors, lawyers, mechanics, banks, insurance companies, and other "(intangible) acts or uses
for which a consumer, firm, or government is willing to pay" are examples of "(intangible) acts or uses
for which a consumer, firm, or government is willing to pay." Public services are those that society
(nation, state, fiscal union, or region) as a whole pays for. By employing their resources, expertise,
innovation, and experience, service providers help service consumers. Service is intangible in nature. A
service is the act or activity by which the service provider offers value to the customer.

2. Differentiate the levels of product.

The core Products

The core product satisfies the customer's most basic demand. A customer who purchases a nutritious
snack bar, for example, may be searching for health, convenience, or simply to satisfy their appetite. It's
possible that a student shopping for low-cost, long-lasting sneakers is simply looking for shoes. A poor
student who spends a lot of money on high-end shoes may be pursuing fame and fortune. Even if he
can't afford it, the student may be seeking a sense of liberation by spending a large sum of money on
something that shows his actual sense of style. Footwear, prestige, and independence are all core
products. The fundamental product is complicated since it is so personalized and often unclear. To put it
another way,

The Promise Product

The outer ring of the product is referred to as the promised product. Every product comes with an
implied promise, which is a characteristic that has been connected with it for a long time. This is the
long-term aim that the buyer is hoping to achieve by acquiring a product. The promised product may be
monetary, such as the resale value of a car, home, or property, but it is frequently more aspirational.
The customer wishes to improve their self-esteem, be happier, more productive, successful, or have a
higher social position.

The Tangible Product

Once the core product has been identified, the tangible product becomes vital. A product's tangible
features are those that can be touched and held, as the word "tangible" means "perceptible by touch."
This notion can be expanded to encompass product features that have a direct impact on a buyer's
choice to purchase. When assessing and making a decision, the customer will consider the product
features, quality level, brand name, styling, and packaging. These elements can be found in every
product to some extent, and they are what consumers consider when considering their options.
Depending on the product, the situation, and the individual, the relevance of each facet of the tangible
product will vary.

Augmented Product

To support each product, a range of services are available. The augmented product includes both the
tangible product and all of the services that go with it. If these services aren't offered, the buyer is likely
to reject the tangible goods. If you go to a department shop, for example, you're likely seeking for a
certain item, but you'll still anticipate restrooms, escalators, and elevators. Dow Chemical has a
reputation for going above and beyond to assist customers. It means that a Dow sales representative
will come out after business hours to assist a struggling farmer. This additional service is an important
part of the overall package.

3. Discuss each of the different categories of products.

Products of Convenience:

These are the most regularly purchased things that do not require a lot of consideration or comparison
to other brands and can be acquired without a lot of time or effort. These are frequently purchased and
hence are well-liked by a huge number of people. Sugar, salt, hair brushes, and laundry detergents are
examples of low-cost convenience products that are readily available when needed.

Products for purchase:

Products with a niche:

These are the types of products that consumers are prepared to put forth the effort to purchase due to
their brand memory or distinctive attributes. Specialty products, for example, may appeal to a specific
market segment rather than the general public, such as high-end technology, professional camera
equipment, or a specific type of designer clothing for which you are unwilling to accept a substitute. Due
to its niche nature, the purchase process necessitates not only more effort, but also a higher level of
competition. In this situation, consumers are more worried about the quality of their purchases and are
more brand aware and loyal.

Unwanted Products:

These are the kind of things that most people are either unaware of or do not consider acquiring until a
specific need arises. Funeral services, house alarms, fire extinguishers, life insurance, and even
encyclopedias are all examples. Because of the nature of these products and services, marketers will
have to perform a lot more advertising and personal selling to get their name out there. The corporation
can convert an unsought product into a wanted product if it can persuade a consumer about the
product's utility. Microwave ovens and electric kettles were originally considered unpopular items until
they became a kitchen necessity and demand grew.

4. Identify and discuss the different salients points in developing a product.

A new product's success normally demands a large sum of money, and there's a much higher probability
of failure than most people believe. Because of the significant danger of failure, it's critical to
comprehend why product development is crucial to businesses and consumers, as well as why you
should engage the support of professionals to ensure that you get it right the first time. Product
development is essential to the survival of businesses and society. The following are provided by all
successful product development actions:

Customers will receive new value.

Any new product or service's first and most crucial goal is to improve the customer's experience. If they
don't have this, there's no incentive for them to spend money on a new device. Customers

a better society

Many of the new items are minor enhancements over prior versions, with simply a few additional
features or a tiny performance boost. These products may help the company survive by bringing in
enough new revenue, but they aren't exactly a boon to society. New products may benefit society in
ways that go beyond the consumer's immediate gratification in some cases. These include novel
pharmaceuticals to cure chronic diseases and car safety technologies that save hundreds of lives each
year. Neither of them will provide the customer immediate satisfaction, but they will save lives and, as a
result, benefit society.

The company's continued existence

New products and services are the lifeblood of any company. When a corporation lacks them, it withers
on the vine, dying or being absorbed by another. Because of the individuals who work for them (who are
also consumers), as well as the taxation and charity contributions that support society as a whole, the
companies' continued existence is good to society.

5. Enumerate the key factors in developing product personality.

1. Product Mission and Vision

A product vision is the big-picture “why” of your company. Why does this product need to exist? What
problem are you trying to solve with your product? What value are you offering? It should inspire your
team to create a better future. A product mission, on the other hand, is what your company is trying to
achieve—it should motivate your team and drive clarity on your objective. When your teams are aligned
around the mission, this becomes the driving force to make your product vision a reality.

2. Business Goals

A product strategy works toward long-term business goals (emphasis on “long-term”). Avoid pursuing
short-term “hacks” with your product that might bring in a spike of revenue in the near-term but are
ultimately unsustainable.

3. Market Landscape

Simon Wardley, inventor and former CEO of Wardley Mapping, found inspiration on strategy in Art of
War by Sun Tzu, which describes five aspects of competition: purpose, landscape, climate, doctrine, and
leadership. “Landscape,” Wardley writes, “is a description of the environment that you’re competing in.
It includes the position of troops, the features of the landscape and any obstacles in your way.” Just as
the physical terrain open fields or dense woods, desert sand, or mountaintop would affect how a
general sends her troops into battle, so too should you account for the business landscape in your
product strategy.

4. Product Analytics

You may have to start your strategy with gut instinct and personal experience, particularly when you
don’t have users yet. But as soon as you acquire users, insights from product analytics should inform and
measure your product strategy. In fact, studies show that data-informed companies are 30% more
profitable. If you want to learn more about how product analytics empowers teams to measure their
product strategy, check out our North Star Playbook.

5. Customer Insights
Customers are at the core of every great product strategy. A recent Zendesk report shows that 76% of
customers expect personalized experiences. But how do you do that? Through customer insights.
Customer insights will help you develop a deep understanding of your target customers—their personas,
their behaviors, their motivations. These data should inform your strategy by uncovering how to add
value for different kinds of users. An effective product strategy is grounded in creating more value for
your customers.

6. Discuss the different pricing strategies.

Skimming the prices

High pricing are set when a new product is introduced, and as more competitors enter the market, the
price is gradually dropped. This type of pricing will benefit businesses wanting to expand into new
markets. It enables companies to take advantage of early adopters and then undercut future
competitors by joining an already established market. The success of your skimming strategy is
determined by the market you wish to join.

Pricing for Penetration

Market penetration pricing is the polar opposite of price skimming. Instead of starting high and
progressively dropping prices, you take over a market by undercutting your competition. Once you've
built up a devoted consumer base, you can boost your prices. One of the many elements that go into
deciding on this strategy is your company's ability to potentially incur losses up front in order to
establish a strong footing in a market. Develop a devoted consumer base, which may demand the
implementation of further marketing and branding techniques.

Premium Rates

Businesses that make high-quality goods and sell them to high-income customers might get premium
pricing. The most crucial component of this pricing plan is to develop a high-quality product that
customers will love using and promoting to their friends and family. To appeal to the right type of
customer, you'll almost certainly need to develop a "luxury" or "lifestyle" branding strategy. Customers
who want to save as much money as possible on whatever good or service they're buying are targeted in
an economy pricing strategy. Walmart and Costco, for example, are both great instances of economic
pricing. Economy pricing, like premium pricing, is dependent on the overall worth of your goods as well
as your overhead expenditures.

Bundle pricing

Bundle pricing occurs when a company combines several products and sells them for a lower price than
if they were sold separately. Bundle pricing is a great way to get a lot of stuff done in a short period of
time. Profits on low-value items outweigh losses on high-value items in a bundle to make a successful
bundle pricing strategy work.

Value- based pricing

Value-based pricing is similar to premium pricing. In this model, a company's pricing is based on the
customer's perception of the product's value. Merchants who sell one-of-a-kind items rather than
commodities should use this pricing model.

Dynamic pricing

You can use dynamic pricing to adjust the price of your products based on market demand at any given
time. The dynamic pricing model used by Uber is a great example of this. Ubers can be a great way to
save money when the economy is down. During the morning rush hour, however, when it rains, the
price of an Uber will skyrocket as demand is likely to rise as well. Depending on the seasonal demand for
your product or service, smaller businesses can do the same thing, depending on the season.

7. Discuss the different distribution strategies.

Distribution channels

Wholesaler

A wholesaler's job is to buy in large quantities from manufacturers and then sell them to retailers. They
usually look for items at a low price so that they can mark them up and profit when selling them to
retailers, who then mark up the cost of the item to generate revenue for themselves. Wholesalers
usually have their own warehouses as well as a catalog of items that retailers can choose from when
making their purchases. Many wholesalers also require retailers to purchase a certain amount of
merchandise, implying that goods are purchased in large quantities.

Retailers

Retailers are the final step in the distribution channel before customers buy an item using the indirect
distribution strategy. Retailers have the option of purchasing goods from a wholesaler or directly from a
manufacturer. Retailers typically buy items at a low cost and then mark them up to make a profit.
Retailers don't always have physical locations; they can also be found on the phone, on the internet, or
even in a catalog. Many retailers are opting to manage an e-commerce website rather than a physical
store to increase sales as a result of the rise of the internet.

Franchisor

In exchange for a flat fee and ongoing royalties to enter an agreement, these independently owned
businesses can use company branding to increase sales.This strategy allows companies and
manufacturers with a strong brand to increase revenue without having to deal with the complexities of
running a physical store.
Distributor

Obtaining and transporting items from manufacturers to retailers or other endpoint locations is the job
of a distributor. Manufacturers who use a dedicated distributor don't have to worry about
transportation logistics or the cost of keeping shipping staff and materials on hand. Distributors may also
be able to combine a variety of products into a single package for sale to a retailer.

Direct Distribution

Manufacturers who sell and send products directly to customers are known as direct distributors. This
method can be used in a variety of ways. The use of an e-commerce website, which allows users to
make online purchases, may be a more modern approach for some businesses. This is a good option for
businesses that have a clientele that isn't too tech-savvy, wants a specific solution to meet their needs,
or is loyal to a specific brand.Catalogs or phone orders are two other methods of direct distribution. The
older customer base or users in specific industries who are accustomed to placing orders in this manner
could be targeted by using this option.

Indirect Distribution

When it comes to distribution, the term "middleman" has a bad rap, but it's true that these companies
can help get goods to consumers. Indirect distribution strategies use intermediaries to help with product
logistics and placement so that they reach customers quickly and in the best possible location based on
their preferences and habits.

Intensive Distribution

The intensive distribution strategy ensures that the products are distributed to as many retail locations
as possible to maximize sales. Gum, for example, is a product that frequently employs this strategy. Gas
stations, grocery stores, vending machines, and retail stores like Target are all places where you can buy
gum. This method is based on the fact that a large number of goods can be found in a variety of
locations. Most of the time, these items do not require a lengthy purchase process in which the
customer conducts extensive research before making a purchase. Rather, these are items that are
bought on a regular basis and require very little effort to sell.

Exclusive Distribution

A deal is made with a retailer for a product to only be sold through that storefront if the manufacturer
chooses exclusive distribution. Another type of exclusive distribution is when a company sells goods
directly through its own branded stores. Customers cannot, for example, buy a Lamborghini at any
location; they must go to a Lamborghini dealership to buy new luxury cars.

Selective Distribution
Between intensive and exclusive distribution, selective distribution is a middle ground option. Products
are distributed in more than one location with this strategy, but not as many as with a more intensive
distribution strategy. Clothing from various brands, for example, could be offered in a limited number of
sizes. Rather than placing its products in a variety of locations such as Walmart or Target, a brand like
Gucci may choose to distribute its products to its own stores in addition to a few select department
stores. This can aid in the creation of an implicit high-end brand message while also increasing the
likelihood that a customer will buy one of the company's products.

8. Discuss the different promotion strategies.

Advertising

A named sponsor introduces and promotes a concept, product, or service. Print ads, radio, television,
billboards, direct mail, brochures and catalogs, signs, in-store displays, posters, motion films, Web sites,
banner ads, and emails are just some of the ways you might advertise. (Always in a paid, non-personal
form)

Selling to Individuals

A procedure of assisting and persuading one or more prospects to purchase a product or service or to
act on any notion through the use of an oral presentation. Sales presentations, meetings, intermediary
salesperson training and reward programs, samples, and telemarketing are just a few examples. It can
be done over the phone or in person.

Direct Marketing

Mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution,
promotional letters, and outdoor advertising are all examples of direct marketing techniques that allow
businesses and nonprofits to communicate directly with their customers.

A sixth aspect of the promotion mix could be the company's image. In marketing, an organization's
image is extremely important. Consumers are less likely to buy a product from a company with a bad
reputation than they would be if the company had a good reputation. As a seventh factor, sponsorship is
sometimes added.

Sales Promotion

For a set period of time, both media and non-media marketing communication are used to increase
consumer demand, stimulate market demand, or improve product availability. Coupons, sweepstakes,
contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and
exhibitions are just a few examples of promotional activities.

Public Promotion

A paid-for intimate stimulation of supply for a product, service, or business unit through the
dissemination of important news or a favorable portrayal in the media. Articles/reports in newspapers
and magazines, television and radio appearances, charitable contributions, speeches, issue advertising,
and seminars are just a few examples.