Product and Price

A product is a good, service, or idea including all the tangibles and intangibles provided in an exchange between a buyer and a seller. People buy a product for the benefits and satisfaction it gives. A product can be a good (like a car) or a service (like your checking account at the bank). Sometimes a product is a blend of the both. Dinner at a restaurant, for example. Consists not only of tangible items – food and beverages – but also preparation, service, and the appeal of dining in that special setting.

Product used by individuals for personal and family cosumption are consumer products. Inexpensive goods and services that consumer often buy, without much thought or effort, are convenience products. Milk, bread, magazine, soft drinks are examples. An item that buyers will expend time and effort to find and purchase is shopping product. This category includes goods such as TV set, VCRs, major appliances, and furniture, and services such as dental care, legal advice, and tax preparation.

Goods and services that have specific attributes desired by a particular group of consumers are known as speciality products. Speciality products can be expensive and unique, such as Mercedes sports car.

Products used by organisations in producing goods or services are known as industrial products.
A group of related goods or services marketed by a firm is called product line. A firm’s product can be shallow, with only one or two products, or deep, including many products. The collection of items and services a firm offers for sale is known as product mix. Marketers refer to product mixes as narrow or wide, depending on how many product lines are carried.

PRICING
The price of a product is one of its most important aspects for both sellers and buyers. Price is the value that buyers exchange for a product in the marketing transaction. Money usually is the value exchanged for a product that satisfies a consumers and greatly affects purchase decisions.
A firm cannot determine a product’s price without considering several factors that affect price. Managers must take into account the use of price and non-price competition, supply and demand, and consumer perception of price. Firms competing based on price competition. It is policy of using price to differentiate product in the marketplace. Generally they set prices equal to or lower than competitor’s prices.
A policy of emphasising aspects other than price, such as, quality, service, or promotion, to sell products is known as non-price competition. This strategy is useful in building brand loyality. A name, sign, symbol, or design a company uses to distinguish its product from others is called a brand. Firms usually want exclusive use of their brands and take steps to prevent others from using them. A brand registered with the patent and trademark office is called a trademark. A trademark, legally protected, can be used only by its owner.

QUESTIONS FOR COMPREHENSION

1. WHAT IS A PRODUCT?
2. WHY DO PEOPLE BUY A PRODUCT?
3. WHAT DO PRODUCTS CONSIST OF?
4. WHAT IS A CONSUMER PRODUCT?
5. WHAT ARE A CONVENIENCE PRODUCTS?
6. WHAT IS A SHOPPING PRODUCT?
7. WHAT DO SHOPPING PRODUCTS INCLUDES?
8. WHAT IS A PRODUCT LINE?
9. WHAT A SPECIALITY PRODUCTS?
10. WHAT IS PRODUCT MIX?
11. WHAT IS A PRICE?
12. WHAT IS PRICE COMPETITION?
13. WHAT IS NON-PRICE COMPETITION
14. WHAT IS A BRAND?
15. WHAT IS TRADEMARK?