Entrep Product-is-Nature-and-Sustainability

Product: its Nature and
Sustainability
Product Description Necessities
1. Cite the uniqueness of product over other existing products in
terms of characteristics variations and the like.
2. Use layman’s term in describing the firm’s product or service.
Present a product mix if the firm will be selling more than one
product.
3. Illustrate the usefulness of the product/service. Provide
substantial information on effectiveness of marketing which
includes positioning strategies.
4. Present the nature including the content of raw materials that
will be used in the proposed product, and what is the source and
where to find it.
Levels of Product
• Tangible Products
-are the basic physical appearance which can be a service or idea having
precise specifications and is offered under a given/specified description or
model number.
• Augmented Product
-includes the image and service features of a certain entity.
• Generic Product
-emphasizes the impact of the product to the consumers, not the seller.
Types of Product
1. Goods are sale of the physical products from the manufacturer to the
consumer or final and ultimate user.
• Durable Goods
-are the physical products that are used over a long period of time.
• Non-durable Goods
-are the physical products that are quickly and easily be consumed or worn
out, become obsolete, unfashionable or no longer popular.
2. Services are intangible products that satisfaction can be measured in
future preferences
• Rented-goods Services
-are the consumer rented facility of the sellers in a
certain period of time.
• Owned-goods Services
-are the repair and maintenance services rendered
by the sellers to the product of the customers.
• Non-goods Service
-is personal service on the part of the seller, most
common are the expertise and profession of the seller.
Customer Service in the Enterprise
1. Define/list the customer service the company
can provide.
2. What are the company’s service strengths and
weaknesses?
3. Give strategies for improving the company’s
customer service.
Characteristics of Services
1. Intangibility is the services that cannot be displayed,
transported, stored, packaged or inspected before lying.
2. The credibility of the service provided most of the time
counts.
3. Inseparability is the service provider and services that
cannot be separated .
4. Variability is when the service is difficult to standardize
because it varies upon the performance of the provider.
Consumer Products- these are goods and services destined/produced for the
final consumer for personal, family, or household use.
• Convenience Products- are purchased with the minimum or less effort because the
buyer has knowledge of product characteristics prior to shopping.
a.) Staples- are low priced items that are routinely purchased on a regular basis and
are products that are used everyday.
b.) Impulse- products are the items that the consumer does not plan to buy.
• Shopping Products- are products that the consumer acquire through further
knowledge and information in order to make final purchase decision.
a.) Attribute-based shopping products provide customer with information and
evaluated product features, performance, options, warranties and other factors.
b.) price-based shopping products enable customers to judge product attribute to
be the same and look around for the least expensive item.
Industrial Products- are goods or services purchased for use/consumption in the

product/manufacturing of other goods or services, in the operation of a business or
for resale to other customers.
These are the following:
1.) Accessory equipment is selected priced portable goods which last long period
of time, requiring a moderate amount of consumer decision making.
2.)Raw materials are unprocessed basic materials from extractive and agricultural
industries. Natural environmental promotes a good source of raw materials.
3.)Industrial or operating supplies are inexpensive convenience goods which are
rapidly consumed and are necessary for the day-to-day operation of the firm.
4.) Component materials are semi manufactured goods which undergo further
changes in form and later be a part of the finished products. The quality of these
materials strengthens the credibility of the product to public.
5.) Installations are very expensive materials, non-portable goods which are
used in the production process and do not become part of the finished product.
6.) Fabricated parts are finished products of other companies which form part
f the manufactured product without further changes in form, but given added
features to make a new product.
New Product Development Process- the process consist of two

sets: one is internal which looks at the company’s objectives and resources, while
other is external which looks at the customer’s needs and wants.
Product Satisfying Features- product patronage in the market
is conditioned by the strategies and policies employed by the
manufacturer and the marketing organization on the product’s attributes.
1. Design- it matters to the elements that collectively form of good
service that will satisfy customers and gain competitive advantage.
2. Product Colors- it is the customer’s rejection or acceptance of the
product.
3. Product Quality- this is set of features and attributes of a product or
service that determined it’s ability to satisfy human needs.
4. Product Warrantees- one every important attribute of the product is
warrantee.
Best Product for Market
Tips in Choosing the Business Name
1. Easy to recall or remember
Understandable so it is easily stored in the memory
2. Pleasant meaning Creates Pleasant Feeling
3. Easy to pronounce
4. Easy to spell
5. Related to the Product
Product Life Cycle- concept describes a product’s sales, profits, customers,
competitors, and marketing emphasis from its beginning until it is removed from the
market.
Stages of Product Life Cycle
I. Product Development -the company must think of a new product.
1. Idea Generation- searching and looking for new product or business opportunities.
Methods:
a. Brainstorming- all the members of the group can contribute in share ideas,
comments, and suggestions.
b. Analyzing Existing Products- a successful product that captures market csn be
analysed as a basis in creating a new product.
c. Reading Trade Publication- an inspirational story of a successful entrepreneur can
lead into a development of a new product.
d. Visiting Suppliers’ Facilities- suppliers’ raw materials can be used as method
innovate and modify existing product.
e. Surveys- getting feedback coming from the customers and problem market.
2. Idea Screening- ideas which are unsuitable, unattractive , or poor are junked. Ideas together
with attributes are rated on the basis of a rating form 1-10.
3. Concept Testing- ideas which have passed the screening stage will require feedback from the
consumer.
4. Business Analysis- is a review of market factors, revenues, cost and trends .
a. Demand Projections- sales potential; sales growth; rate of repurchased distribution intensity.
b. Cost Projections- per unit cost; raw material cost; cost of existing facilities and resources;
breakeven point.
c. Competition- market share of company and competitors; strengths and weaknesses of

competitors; potential competitors.
d. Required Investment- engineering, patent search, product development testing, promotion;

production; distribution.
e. Profitability- time to recover initial cost; per unit profits; distributions intermediaries; control
over price; return on investment.
5. Product Development- ideas are converted into tangible form. This stage
involves:
a) Product construction: type and quality of materials, method of production,

production time and cost requirements per unit; plan capacity; sizes and colors.
b) Packaging: materials used in promotion or storage; cost; sizes and colors.
c) Branding: choice of new or existing name; exclusivity; trademark protection.
d) Product positioning: selecting a market segment
e) Consumer attitude and usage testing.
6. Test Marketing- involves a selling of a fully; developed product in a selected city

and observing the actual or on the spot performance under the chosen marketing plan.
7. Commercialization- the involves the actual marketing of the product in the target
market.
II. Introduction
A new product is introduced into the marketplace and the objective is to generate
customer interest.
III. Growth
The product gains wider consumer acceptance and the objective are to expand
distribution and the range of available product alternatives.
IV. Maturity
The product’s sales level and companies try to maintain lower price, better
product features for as long as possible.
V. Decline
The product’s sales fall as substitutes and new competitors enter the market .

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Entrep Product-is-Nature-and-Sustainability

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Product: its Nature and

Industrial Products- are goods or services purchased for use/consumption in the

New Product Development Process- the process consist of two

4. Business Analysis- is a review of market factors, revenues, cost and trends .

c. Competition- market share of company and competitors; strengths and weaknesses of

d. Required Investment- engineering, patent search, product development testing, promotion;

a) Product construction: type and quality of materials, method of production,

b) Packaging: materials used in promotion or storage; cost; sizes and colors.

c) Branding: choice of new or existing name; exclusivity; trademark protection.

d) Product positioning: selecting a market segment

e) Consumer attitude and usage testing.

6. Test Marketing- involves a selling of a fully; developed product in a selected city

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