PRODUCT is "anything that can be offered to a market for attention, acquisition, use, or consumption

that might satisfy a want or need" (KotJer and Armstrong, 2014).

A product is the key element in the overall market offering, which may include both tangible goods and
services.
 pure tangible goods—such as salt, sugar, or shampoo---or products which are not accompanied
by services
 pure services—such as legal services—or products that do not involve tangible goods.
 goods-and-services combinations, such as restaurants, where goods are accompanied by
services in buying the product.

SERVICES are intangible products that involve activities that do not result in ownership, and are
provided by one entity or person for another entity or person.

 Intangibility — Services are intangible, which means that they cannot be seen, heard, smelled, touched,
or tasted, and the buyer cannot claim ownership once it has been availed of.
 Perishability— Services cannot be stored for future use unlike goods that can be inventoried.
 Variability—Services are hard to replicate to all customers. There will always be variations or
differences because not all customers are the same
 Inseparability —The consumer has to be present when the service is being rendered.

According to Philip Kotler, there are FIVE LEVELS OF A PRODUCT:

1. Core benefit is the very reason a customer buys a product. For example, a person buys a bar of soap to
cleanse his or her body.
2. Generic product is the no-frills version of the product. For example, a soap is simply a hard bar that
produces bubbles when wet.
3. Expected product is a set of attributes that a buyer normally expects to get when buying the product.
Customers expect soap to have a packaging and some scent.
4. Augmented product includes attributes and characteristics that set the product apart from its
competitors. These attributes can be its competitive advantage or unique selling proposition (USP).
Soaps, for example, can have whitening or moisturizing benefits.
5. Potential product includes all the possible improvements or transformations that the product may
potentially undergo in the future.

Classification Based on Consumers' Shopping Habits

1. Convenience products are products that are purchased frequently, immediately, and with minimal
effort.
2. Shopping products are products that consumers compare based on suitability, quality, price, and style.
3. Specialty products are products that have unique characteristics or brand identification which buyers
consider as important for them to make a special purchasing effort.
4. Unsought products are products that consumers do not normally think about.

Classifications Based on Industrial Use

Products that are bought for further processing or for use in conducting a business are called industrial
goods.

1. Materials and parts make up the raw materials and the manufactured materials and parts that are sold
directly to industrial users.
2. Capital items are long-lasting goods that aid in the buyer's production or operations.
3. Supplies and business services are short-term goods and services supplied to businesses to facilitate
business operations,

Product Decisions
Companies need to make product decisions for their goods and services.
Individual Product Decisions
Marketers are expected to create products that will sell well in the market.
Product Attributes
 1. product Quality — In the most basic definition, quality can be defined as "freedom from defects."
2. product Features — A company can create product differentiation through the features that are
available in the product.
3. Product Style and Design — Style defines the appearance of a product, while design contributes to the
product's usefulness and look.
Branding
Branding, or the identity of the product, is part of the product's differentiation.
Packaging
The packaging is the first thing that a consumer sees in a product.
Labeling
Labels are a means to identify the product and to communicate the name and other pertinent information
about the product.

Product Support Services

Customer service is part of a company's offering to its customers, which can take a minor or major role
in product support services.

Product Line Decisions

A product line is a group of products that are closely related due to the following reasons: they have
similar functions
1. Product line filling adds more items within the present range of the product line
2. Product line stretching involves lengthening the product line beyond its current range.
Product Mix Decisions
A company may include several product lines in its portfolio, which makes up the product mix.

New-product Development Process

1. Idea generation is the first step toward new-product development. Companies generate a lot of ideas,
which may come from internal or external sources.
2. Idea screening reduces the number of ideas generated in the first step by dropping poor ideas and
pursuing good ones.
3. Concept development and testing comes when a good idea has been found viable. A product concept
is a detailed version of the idea.
4. marketing strategy development, an initial marketing strategy is designed to introduce the product to
the market. The marketing strategy is composed of three parts.
5. Business analysis evaluates the attractiveness of the proposal based on costs, sales, and profit
projections.
6. Product development sees the product concept transform into the physical form of the product.
7. Test marketing happens after the concept test and product test have been successful.
8. Commercialization introduces the new product to the market and implements the proposed marketing
strategies

Product Life Cycle

A product undergoes a life cycle in its presence in the market. Some products stay long and prosper, while
others eventually meet the end after they have served their customers.

 product development, the company finds a new idea and develops it into a product (as discussed in the
new-product development process).
 introduction stage, the product is released in the market but sales are slow. In this stage, the objective
of the company is to create awareness of the product's existence.
 growth stage is where the product starts picking up sales. The sales increase as the product becomes
known in the market.
 maturity stage is where the product has reached its potential, so the sales level off and slow down.
 decline, sales and profits go down..

What Is Price?
 Consumers pay a Price in exchange for the products they buy. Price is the sum of all values that customers
give up to gain the benefits of having or using a product (Kotler and Armstrong, 2014).

Factors Affecting Pricing Decisions

1. Product Cost
The costs involved in manufacturing goods or offering services have a direct impact on the product's price.
2. Competitors
Competition also affects a product's price. Consumers sometimes base their purchase decision solely on the
price of the product.
3. Overall Marketing Strategy
Companies must first decide on the overall marketing strategy for their product.
4. Economic Conditions
Economic conditions can have a very strong impact on consumer purchases, which may also affect pricing
decisions.
5. Government Laws and Regulations
The government may sometimes impose price changes through laws and regulations. When the Sin Tax Reform
Law or Republic Act 10351 was approved in the Philippines, it imposed taxes on alcohol and tobacco products,
thereby significantly increasing the prices of these products.

Distribution Channels

1. Downstream activities focus on bringing the products to the consumers,

2. upstream activities look into the suppliers of raw materials, finances, expertise, and information
needed to create a product or service.

 Information provider. Marketing intermediaries gather and process information that is vital to
understanding the market better. They can provide consumer insights to the manufacturer that can help
in offering better products.
 Product promotion. Marketing intermediaries, specifically retailers, conduct promotions and marketing
efforts in order to encourage customers to patronize certain products. This creates excitement and
interest among consumers, which may later on translate into increased sales of the manufacturer's goods.
 Physical distribution. Marketing intermediaries take care of physical distribution and packaging goods
for transport and at-home storage.
 Matching demands and supplies. Customers find almost everything they need at certain stores, whether
it is a supermarket, a department store, or a bookstore.
 Merchandising. Marketing intermediaries take care of physically arranging goods so it will be
convenient for the customers to shop for what they need. For example, coffee, creamer, tea, and other
breakfast items may be merchandised together.
 Sales promotion. Customers enjoy sales promotions and other marketing efforts from time to time,
which may focus on just a few products or all of the products in the retail store.

Channel Levels
Distribution channels may have several layers, and each layer is called a channel level.

indirect marketing channel contains one or more intermediaries,

Supply chain management is the management of upstream and doss stream value-added flows of
materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

 outbound logistics (moving products from the manufacturer, to the distributor, to the retailers, and then
to consumers),
 inbound logistics (moving materials from suppliers to the manufacturer), and
 reverse logistics (reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products
returned by customers or distributors),
Major Logistics Functions

1. Warehousing
Companies must make decisions on how to store their goods, for how long, and how big of an area they need.
2. Inventory Management
Proper inventory management ensures that there are enough stocks of goods given the demand for a period of
time.
3. Transportation
There are different types of transportation used in moving goods and distributing services.

Retailing and Wholesaling

RETAILING includes all activities involved in selling products or services to final consumers for their
personal or household use.

 Product Decision. The retailers must carefully select the merchandise assortment they will carry in the
store
 Price Decision. The retailer's price must suit its positioning, target market, competition, and economic
factors.
 Place Decision. The key in retailing is location.
 Promotions Decision. To reach consumers, retailers may use advertising, public relations, sales
promotions, and personal selling in order to create awareness and promote their products.

Types of Retail Operations

self-service retailers where customers pick up the items themselves and proceed to the counter to pay. This
is usually utilized by retailers that sell convenience goods such as supermarkets.
Limited-service retailers provide more sales assistance as they carry more shopping goods that customers
need information on.
Full-service retailers assist customers in every phase of the shopping process
Product Line
 department stores carry a wide variety of product lines. They usually carry products for men, women,
and children, and home and kitchen furnishings.
 Supermarkets are large, low-cost/high-volume stores designed to serve the customers' need for
groceries and household products.
 convenience stores are relatively small stores that are open 24/7 and carry high turnover
convenience goods and ready-to-go food.
 Superstores are much bigger than regular supermarkets and carry a large assortment of
groceries, nonfood items, and services.
 Service retailers are stores whose main products are services such as salons, spas, hospitals,
banks, airlines, cinemas, and the like.

Relative Prices
Retailers can be classified according to the prices they charge to the customers.

Discount stores carry standard merchandise with lower margins and higher volumes.
Off-price retailers carry items at regular wholesale prices and accept lower margins to keep prices
down.
Warehouse clubs carry grocery items, appliances, clothing, and other goods at big discounts to
members who pay annual membership fees.

Green Retailing
 As companies become more aware of their social responsibility, more retailers nowadays adapt
environmentally sustainable practices..
Wholesaling
Wholesaling includes all the activities involved in selling goods and services for resale or business use,
or for further processing. Wholesalers buy mostly from manufacturers and distribute to retailers, industrial
consumers, and other wholesalers.
Types of Wholesalers
Merchant wholesalers provide a full line of services such as carrying stocks, maintaining a sales force,
offering credit, making deliveries, and providing management assistance.

Distribution Channel Decisions

Companies need to make decisions on how to strategically distribute their goods.
 Choosing Intermediaries
Manufacturers need retailers, wholesalers, and other intermediaries to distribute their goods to the
final consumers.
 Motivating Intermediaries
Once a relationship has been established with the intermediaries, companies must maintain a good
partnership with them.
 International Distribution Channels
Distributing products in other countries is a great challenge for companies.

COMMUNICATION PROCESS

 Sender — the origin of the message

 Encoding - the process of putting thoughts into symbolic form
 Message - the set of symbols or the elements formed in the previous step (encoding) that will be
transmitted.
 Media — The channel through which the message is transmitted from the sender to the receiver.
 Decoding - the process by which the receiver assigns meaning to the symbols transmitted by the sender.
 Receiver — the recipient ofthe message
 Response —the reaction of the receiver after being exposed to the message.
 Feedback—the receiver's response that is communicated back to the sender.
 Noise - distortion or static during the communication process that distracts the receiver or changes the
way the receiver decodes the message.

The Promotion Mix

Advertising Advertising is a paid form of nonpersonal communication in audio or visual form

 that promotes products (goods, services, ideas, or places) to a specific audience.
Public Relations Public relations builds good relations with the company's various internal and
external publics by creating favorable publicity, building up a good corporate image,
and addressing unfavorable issues and events.
Sales Promotions Sales promotions are short-term incentives created to encourage customers to
purchase a product.
Direct Marketing Direct marketing is the direct communication with individual consumers via
different channels to generate an action response and to build lasting relationships.
Personal Selling Personal selling is the personal interaction between the sales personnel and the
customers for the purpose of making a sale and building customer relationships.

Integrated Marketing Communications

Advertising
Persuading consumers to buy a product
Advertising Objectives
Before deciding to invest on advertising, marketers must first determine the advertising objective of the
product based on its target market, positioning, and current place in the market.

Sales Promotions
Consumers always look for value for money in their purchases. "Discount, sale," and "free" are powerful
words that can sway a consumer to enter a store, regardless of how much money he or she has in his or her
pocket.

Consumer Promotions -- final consumers are urged to purchase urgently to boost sales of products in a short
period of time

 Trade Promotions - targeted toward retailers and wholesalers to increase orders, carry new items, buy
ahead, or promote the company's products and give them more shelf space

 Business Promotions — promotions to business customers are offered to generate leads, stimulate
purchases, and reward business customers

 Sales Force Promotions — geared toward the sales force, it aims to motivate the sales people to
increase the order of their accounts and offers support for their accounts' promotional activities

Trade Promotions
Trade promotions come in the form of discounts, allowances, or free products upon purchase of a
required number Of products from the manufacturer.
Business Promotions
Business promotions are activities that generate business leads, stimulate purchases, or reward
customers.
Sales Force Promotions
Salespeople need motivation to sell more ofa company's products.

 Direct Marketing
Companies now adapt promotional techniques that narrow down their efforts to carefully targeted
consumers, instead of employing mass marketing. Direct marketing uses marketing efforts that
connect them with selected consumers, often on a one-to-one, interactive basis

 Personal Selling
A company's sales force is an important component in influencing consumers to make a purchase.
 Personal selling is the interpersonal interaction between customers and salespeople to make sales
and maintain customer relationships.
 Digital Marketing
 The digital revolution is shaping the way marketing influences consumers. Traditionally, a television
advertisement is Viewed on TV, a print advertisement is seen on a magazine or newspaper, and a
billboard is viewed from afar while on the road.

Global Marketing
The world has become smaller because of globalization.
Column B
What Is Global Marketing?
a. Shopping products
Global marketing covers a bigger scope of marketing activities and entails b. Intangible
conducting business activities outside of the home country (Keegan and Green, c. Inseparability
2015). d. Core Benefit
e. Variability
A global marketing strategy must be employed in order to understand f. Expected product
customer preferences, competitors, channels of distribution, and promotional g. Capital items
requirements for each market. h. Test marketing
i. Unsought products
Standardization versus adaptation is the extent to which a company uses j. Perishability
the same marketing mix elements in another country market (standardization), or differentiates it from the home
country strategies to adapt to the needs of the country market (adaptation).

Global localization is a term that indicates that there is no "one size fits all" strategy when it comes to
marketing products globally. Companies must have the ability to think globally and act locally in order to adapt
to the differences in market situations and elements.

I. Identification
1. It can help identify strategies that can be used by the company
to identify growth opportunities.
2. It offers modified or new products to current markets.
3. It is the process that turns plans into actions in order to
accomplish the company's objectives and strategic goals. .
4. It is a format used by companies that sell in different locations,
where the sales and marketing people are assigned to specific countries, regions, or areas.
5. This evaluates results of marketing strategies and plans, and
takes corrective actions to ensure that the objectives are attained.

6. It helps the company identify opportunities and threats in four

major areas, or to reveal the direction of change within the business environment.
7. It is any paid form of nonpersonal communication that promotes
goods, services, or ideas by an identified sponsor.
8. It utilizes the different digital media to promote brands. Paid,
owned, and eamed media can be monitored through various means.

II. Essay

1. What benefit would a company get from a detailed marketing plan?

2. How do you compute the marketing ROI? Why is it important for companies to measure the return on
their marketing investment?
3. Do you think people will also benefit if they know their strengths and weaknesses? How can you use
your strengths to your advantage and how can you turn your weaknesses into strengths?

1. It is a type of service that means they cannot be seen, heard, smelled, touched, or
tasted, and the buyer cannot claim ownership once it has been availed of.
2. It is a set of attributes that a buyer normally expects to get when buying the product.
Customers expect soap to have a packaging and some scent.
3. It is a product that consumers do not normally think about.
 4. The consumer has to be present when the service is being rendered.
5. These are long-lasting goods that aid in the buyer's production or operations.
6. Services cannot be stored for future use unlike goods that can be inventoried. Goods
which are not sold on a certain day can be sold on the next day, such as remaining stocks of noodles, rugs, or
drinks.
7. This happens after the concept test and product test have been successful.
8. It is the very reason a customer buys a product. For example, a person buys a bar of
soap to cleanse his or her body.
9. It is the form of services that are hard to replicate to all customers.
[Link] is a product that consumers compare based on suitability, quality, price, and style.

III. Identification: Write your answer on the space provided

1. It is the first thing that a consumer sees in a product.
2. It is the first step toward new-product development. Companies
generate a lot of ideas, which may come from internal or external sources.
3. It may include information such as name, volume/ weight, product
description, nutritional information, ingredients, and contact information of the manufacturer/distributor.
4. This happens after the concept test and product test have been
successful.
5. It involves selling a product at two or more prices, even if the difference
in prices is not based on cost differences.
6. It is a name, term, sign, symbol, design, or a combination of these that
identifies the maker or seller of a product or service.

Performance task

You may send your activity via Gmail or messenger (50 pts.)

You are a researcher for a local museum. The curator asked you to find a product that is no longer available in
the market, and discuss its life cycle from product development to decline. The owner is requiring you to submit
a paper (to be used as a caption of the product during display) and a creative PowerPoint presentation to be
presented during the museum's "Throwback Fair," which is a collection of items that people used in recent years
and are no longer around. Make sure that the product was a popular item and was available during your parents'
younger days. Limit your PowerPoint presentation by featuring a minimum of 20 items and a maximum of 50
items.

IV. Identification
1. It is the management of upstream and doss stream value-added
flows of materials, final goods, and related information among suppliers, the company, resellers, and final
consumers.

2. It is the term used for each layer in distribution channels.

3. This management ensures that there are enough stocks of goods

given the demand for a period of time. It also ensures that when customers visit the store, the goods that they
need are properly stocked.

4. This refers to the amount of service that assist customers in

every phase of the shopping process.

5. This are stores whose main products are services such as salons,
spas, hospitals, banks, airlines, cinemas, and the like.

6. It carries grocery items, appliances, clothing, and other goods at

big discounts to members who pay annual membership fees.
 7. It is the distortion or static during the communication process
that distracts the receiver or changes the way the receiver decodes the message.

8. It is a short-term incentives created to encourage customers to

purchase a product.

9. It is an exclusive event where media members and press people

get firsthand information about a product, before it is launched in the market.

10. It is a term that indicates that there is no "one size fits all"
strategy when it comes to marketing products globally.

V. Essay

1. How do sale promotions encourage consumers to make a purchase?

2. Why must companies use carefully selected customers as recipients of direct marketing
communications?

3. How does PR differ from advertising?

4. What is advertisement and branded entertainment? How are these being utilized by TV shows and
movies in the Philippines? Can you cite actual examples where there are used?

VI. A. Performance task.

Do you use the same word and manner of speaking when you talk to your friends, teachers, or parents? Why or
why not? If your answer is no, how do you speak to each one of them? Why do you have to do this? Do you
think this can be an example of standardization versus adaptation?