PRODUCT
CONCEPT
Prepared by: Ms. Dovie Jean N. Merillo
What is a product?
A product is anything that can be offered to a market that might satisfy a want or
need.
Service
Is a form of product that consists of activities, benefits, or satisfactions
offered for sale that are essentially intangible and do not result in the ownership
of anything.
Products
Five Ingredients that Define a Product
Tangible Elements
Physical and technical characteristics of the product
Presumed Benefits
The expected experience that customers seek if they use the product
Delivery Processes
The service consideration and applications of the products
Brand Promises
The reputation, assurances, and uniqueness of the product of the manufacturer.
Product Context
The relationship of the product with its use in the environment
Example of a Product and Its Components
Product Idea
Physical Properties: Liquid
Description: Aromatic Shampoo
Quality Level:
Service/ Warranty/Expiry:
Brand Name: Sunsilk
DESIGNING A NEW PRODUCT
An effective design process:
Matches products or service characteristics with customer requirements
Ensures that customer requirements are met in the simplest and least costly manner
Reduces the time required to design a new product or service and
Minimizes the revisions necessary to make a design
PRODUCT DEVELOPMENT STAGES
Idea Generation
Feasibility Study
Development and Testing of Product Design
Final Design and Process Plans
Types of Products
Durable Products
1. Durable Products
The products which are tangible and can be used repeatedly.
For example- television, refrigerator, clothes, machines, etc.
Durable Products
2. Non-Durable Products:
The products which are tangible and perish within one or few uses.
For example- salt, pepper, soap, etc.
2. Consumer Products
1. Convenience Products:
These products which are purchased frequently, and immediately and with minimum
efforts. For example- newspaper, toothpaste, washing-detergent, cigarette, tobacco,
etc.
2. Consumer Products
2. Shopping Products:
The products which customer purchases less frequently and after careful comparison,
on the basis of suitability, quality, price and style. For example- major
appliances, clothing, furniture, cars, etc.
2. Consumer Products
3. Speciality Products:
Those products that have brand identification or unique characteristics are known
as specialty products. Buyers for these goods generally spend more time seeking the
product they want than on comparing brands. For examples, cars, stereos,
television, etc.
2. Consumer Products
4. Unsought Products:
Those consumer products that are either not known to the consumers or even if they
are known, customers generally do not have compelling impulse to buy them. For
example-Life insurance, blood donation, etc.
3. Industrial Products
Those products that are purchased for further processing or for use in operating a
business are called industrial products.
3. Industrial Products
1. Farm Products:
Products which are produced on farms and supplied as raw material to different
organisations.
For example- wheat, cotton, livestock, vegetables, fruits, etc.
3. Industrial Products
2. Natural Products:
Products which are gift of nature are termed as natural products.
For example- crude oil, fish, timber, iron-ore, etc.
3. Industrial Products
3. Manufactured Products:
The products which have been manufactured but still, are used as products for
further industrial use. For example- pig-iron is converted in steel and then steel
is further used for paint, nails, brooms, etc.)
3. Industrial Products
4. Supplies:
Any short-term good or material which is necessary for the day-to-day operations of
a business.
Supplies are of two types-operating {e.g., lubricants, coal, typing paper, etc.)
and maintenance (e.g., paint, nails, brooms, etc.)
Reference:
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