ASSINGNMENT

                       

                      ASSINGNMENT 

CHAPTER # 8

Question #1what is product and how can planners build customer value?

We can define a product as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. Products include more than just tangible objects, such as cars, computers, or cell phones. Broadly defined products may also include services, events, persons, places, organizations, ideas or mixes of these.

Product planers build customer value for their product by focusing on three levels, each level adds more customer value. The most basic level is core customer value, which addresses the question what is the buyer is really buying? When designing products, marketers must first define the core, problem solving benefits or services that consumer seek.

At the second level, product planers must turn the core benefit into an actual product. They need to develop product and service features, design, a quality level, a brand name and packaging.

Finally product planers must build an augmented product around the core benefits and actual product by offering additional consumer services and benefits.

Question # 2 how does an industrial product differ from a consumer product? Discuss the types of industrial products and provide an example of each.

Industrial products are those products which are purchased for further processing or for use in conducting business. Basic difference between industrial product and consumer product is the purpose for which the product bought. If a consumer is buying a product for use around his home it is a consumer product and if the same consumer is buying a product for use in a business than it is an industrial product.

There are three types of industrial products which are as below.

Material and pats include raw materials and manufactured materials and parts. Raw material consist of farm products (wheat, cotton, livestock, fruits, vegetables) and natural products( fish, lumber, crude petroleum, iron core).manufactured material and parts consist of component materials (iron, yarn, cement, wires) and component materials (small motors, tiers and casting).most manufactured materials and parts are sold directly to industrial users. Price and services are the major marketing factors; branding and advertising tend to be less important.

Capital items are industrial products that aid in the buyer’s production or operations, including installations and necessary equipment. Installations consists of major purchases as (building, factories and offices) and fixed equipment (generators, drill presses, large computer system, elevators).accessory equipment includes portables factory equipment and tools (hand tools, lift trucks) and office equipment(computers, fax machines, desks). They have a shorter life than installations and simply aid in the production process.

The final type of industrial product is supplies and services. Suppliers include operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms). Suppliers are the convenience products of the industrial field because they are usually purchased with a minimum effort or comparison. Business services include maintenance and repair services (window cleaning, computer repair) and business advisory services (legal, management consulting, advertising) susch services are usually supplied under contract.

Question #3 discuss the product attributes through benefits are communicated and delivered to customers.

Important decisions are taken in the development and marketing of each product. Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by product attributes such as quality, features, style and design.

Product quality

Is one of the marketer’s major positioning tool. Quality has a direct impact on product or service performance, thus it is closely linked to customer value and satisfaction. In the narrowest sense, quality can be defined as “freedom from defects”. But most customer-centered companies go beyond this narrow definition. Instead they define quality in terms of creating customer value and satisfaction. The American society for quality defines quality as the characteristics of product or service that bear on its ability to satisfy stated or implied customer needs. Similarly,Siemens defines quality this way “Quality is when our customers come back and our product don’t.

Product features

A product can be offered with varying features. Features are a competitive tool for differentiating the company’s product from competitor’s product. Being the first producer to introduce a valued new feature is one of the most effective way to compete.

How can a company define new features and decide which ones to add to it’s product? The company should periodically survey buyers who have used the product and ask three questions. How do you like the product. Which specific features of product do you like, which features could we add to improve the product. The answer provide the company with a rich list of feature ideas. The company then can asses each feature’s value to customer versus it’s to the company. Features that customer value highly in relation to cost should be added.

Product style and design

Another way to add customer value is through distinctive product style and design. Design is a larger concept than style. Style simply defines the appearance of a product. Styles can be eye-catching or yawn producing. A sensational style may grab attention and produce please aesthetics, but it does not necessarily making the product perform better. Unlike style, design is more than skin deep it goes to the very heart of a product. Good designs contributes to a product’s usefulness as well as to its looks.

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