Quiz 8: Elements of Product Planning for Goods and Services
While the clinic sells a small number of pet supplies, these are not described in the marketing plan. HVC has future plans to develop a retail store with a variety of goods, but right now all of the clinic's products are services. While the marketing plan is not organized by particular products, some information can be inferred from the broader plan. Some product classes appear to be relevant for the veterinary services offered by HVC. The table below looks at some of the product classes, examples at HVC, and evaluates the current strategy's fit with the textbook recommendation.
Product is an objective of the business. Usually, products are successful in the market when the businesses plan the four steps of product life cycle. Steps involve defining, developing, managing and replacing. An objective in creating a product involves what's, why's, how's, and the strategy of future development of marketing mix. Other objective involves developing a marketing tool for defining, developing, managing, and replacing a product. A product generates a business from innovative ideas. The innovation gives the successful result of business. The result of business requires designing a marketing mix. Marketing mix involves the issues of the product, decision of the price, place of business, and requirement of promotional activity. Marketing mix also involves consumer, process of service, and physical experiences of the service. Definition of a product: Product defines the offer to benefit the customer. Product satisfies the requirements of the customer or differentiating the features of the existing product. Businesses require three simple step to define the product. Assume restaurant services, which offer the variety of food to Japanese customer. In step 1, business will find the target of the customer. So, business will investigate and understand the target segment, which fulfills requirements, choice, and interest of the consumer. Step 2 involves increasing the features of the product or services. This Step differentiates the product from the requirement, choice, and interest of the consumer. Business may add six different features to satisfy the demand of the product or services and suiting the Japanese consumer. Below table shows the list of targets in step 1 and the list of features of the product in step 2. So, business owner decides to bring the quality recipe and hire a Japanese waiter to suit the quality of the preparation. Below figure shows the next step of business owner who decides to offer the parcel covering the Japanese interior design and provide a chopstick. Now, the business owner offers consumer services to satisfy the list in the targeting the segment of consumer. Below figure shows the decision of consumer services. Business owner decides the high level of service, bring Japanese music station, and table service with online payment Restaurant name as Japan café will add the perceived value of the food services. So, all the above details provide the feature of the product. This step decides the exact needs of the consumer through product offering. Step 3: involves providing the value addition, advantages, and benefits of product. The value addition of the product includes serving new food menu, which gives the new taste to the consumer. Japanese Chef may add specific recipe in the new food menu. Advantages involve the effects of value addition of the product. Tasty Japanese dishes and parcel services gives the advantages of the product or services. Benefits involve the brand trust of the consumer. Consumer can enjoy the Japanese music station, spending time together with the family; and have a relaxing time from the busy day. Additional tools: Marketers can use additional tools and theories helping to define, develop, manage, and replace the feature of the product. Analyst can target the phase of product in the product life cycle and design product performance from the tool. Marketers can investigate brand equity and other marketing tool. Marketers can propose the GE model to the line of product and implement Ansoff's matrix to facilitate the growth of the product. Marketing team can bring product replacement strategies when the performance of the product is low.
Everything the customer buys is either a good or a service. A good is physical. Any physical product is known as a good. Businesses pays money to do a task is known as a service. For an example, Customer pays money to transport the goods is a service. Transport is a task when customer pays someone to transfer a good. For an example, a book is a good whereas selling a book is a service. If customer wants to buy a pipe is a good. Fixing a pipe require a plumber to install it. So, paying money for the installation is known as service. A car is a good. If a car breakdowns, repairing a car is a service. Service is a job when the customer pays someone to service. Usually, Customer shop for the goods and services. The income of the customer helps to buy goods and services. A business has the four terms of marketing mix. Product is an important term of marketing mix. A product encompasses the number of different objective. Business defines a product with many objectives to satisfy the consumer needs. Product refers to the combination of goods and services. Goods and services differ in certain categories. A typical good is a physical product. Physical product has a form, shape, size, weight, and other properties etc. The properties of good allows consumer to gauge the quality and price. Differences between goods and product: Intangibility: Services loses certain physical features. Features makes difficult to analyze the services. Goods have a physical feature and examine the performance of the product. Service does not have the same performance of the good. Hence, Service has intangibility. Quality of the services requires the examining through third party business. Inseparability: Consumer requires presence and conduct the delivery of the service. Consumer requires presence to transport a good. Thus, consumer participates for the delivery of the service. Product performance is critical when the customer is separate from the particular process. Hence, consumer requires participation to deliver a product. Consumer has the ability to affect the outcome of the services. Variability: Consumer purchases a product from the mass production of the producer. Services give the great deal of variability. Consumer receiving the service is dependent upon the third party supplier. So, less experience of Supplier may affect the outcome and quality of the product. For an illustration, when Customer visit the busy restaurant. Shortage of supplier and the lot of consumer will affect the outcome of the service. Thus, service depends upon the quality supplier. So, businesses prefer customer service oriented services with competent staff, and other capabilities. Perishability: Few products are perishable relating to the services. Consumption of service and purchase happens at the same time. Service requires purchasing and consuming a product. So, the product has advantages and disadvantages. For an example, a restaurant provides goods and services. Goods means offering a tasty meal and services means polite staff, discounts, and quality of speed. Below tabular details broadens the difference between goods and services: