Class 7 - February 24, 2011

This week we discussed Chapter 9, Product Concepts.

First of all, you need to know what a product is.  A product may be defined as everything both favorable and unfavorable that a person receives in an exchange.  Typical product features are the packaging, style, color, options, and size.  A product can be a tangible good, a service, an idea, or some combination of these. 

There are six major types of products:

1. Business product - used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers.
2. Consumer product - is bought to satisfy an individuals personal wants.
3. Convenience product - a relatively inexpensive item that merits little shopping effort - a customer is unwilling to shop extensively for such an item.
4. Shopping product - usually more expensive than a convenience product and is found in fewer stores - consumers usually compare several brands or stores on style, practicality, price, and lifestyle compatibility.
5. Specialty products - consumers search extensively for a particular item and are very reluctant to accept substitutes.
6. Unsought products - a product unknown to the potential buyer or a known product that the buyer does not actively seek - new products, insurance, burial plots.

Rarely does a company sell only one single product, they usually sell a variety of products.  A product item is a specific version of a product that can be designated as a distinct offering among an organization's products.  A product line is a group of closely related product items.  An organization's product mix includes all the products it sells.

We also discussed branding.  A brand is a name, term, symbol, design, or combination thereof that identifies a seller's products.  A brand name is that part of a brand that can be spoken, including letters (GM, YMCA), words (Chevrolet), and numbers (WD-40, 7-Eleven).  The elements of a brand that cannot be spoken are called the brand mark, such as the Mercedes Benz symbol.  A trademark is the exclusive right to use a brand or part of a brand.  Others cannot use the brand without permission. 


I learned that my product mix will include all of the services that my company offers.  It was good to learn the correct terminology for each of these.