What Are Products

1. What are products?

Products are goods that are offered to consumers for a price. It is something tangible that customers can take with them. There are many different types of products, they might be something for their everyday need, everyday living, or their personal pleasure.

An example of a product for consumers' everyday need is toothpaste. A dining room table is an example of everyday living. A plasma TV is an example of personal pleasure. How do consumers buy a particular product? Depends on the marketing techniques marketers use and how much brand equity a particular brand has earn.

Toothpaste needs advertising because there are several brand names that are very well known such as Colgate, Crest, and Aquafresh. All these brands have brand equity and the determining factor on which brand a consumer will buy will be value, distribution, and brand loyalty. All three brands need to be priced around the same dollar amount. All three brands need to be accessible in supermarkets, department stores, gas stations, and pharmacies. Marketers need to use cents-off-deals and sales promotions to add value and persuade consumers to buy their brand.

An example of everyday living is a dining room set. How will marketers add value to the product? Two factors will play a major role, quality and price. Consumers want to know how much they are getting for their money, the better the quality, the higher the price. Marketers need to demonstrate to consumers that their product is worth every penny. They need to be able to tell consumer what is the competitive advantage of buying their product.

Plasma TV will enter in a monopolistic competition. Marketers need to emphasize the product concept and should use persuasive advertising. There is a lot competition and sales will be determined on the best TV with the best features. Marketers need to demonstrate the product quality in order to succeed.

An example of a service is a spa. When consumers go into a spa, they come out with empty hands, but with great personal satisfaction, An intangible satisfaction. In order to add value to a spa the marketing strategy should focus on pampering the individual. How much pleasure will the individual experience? Will the individual feel like a king/queen? When an individual reserves a day at a spa, he is looking for the most personable and enjoyable experience and that is the message marketers need to deliver with their advertising.

2. Define new product development. List and explain the eight major steps in the new product development process.

New product development is the thought process of making an idea into a product that consumers will want, need, or desire. There are several steps into making a product.

a. Idea generation - Determining a need or want that will generate a product. What do consumers want and/or need? What product will enhance another product?

b. Idea screening - After several ideas have surface, producers need to determine what will make a profitable product.

c. Concept development and testing - Marketing research needs to be done. It needs to be determined if consumers will pay for this new product.

d. Marketing strategy development Ð'- Develop a strategy to attract customers to purchase the new product.

e. Business