Principles of Marketing Q2 Module 8 Grade 11 PDF

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Senior High SchoolPrinciples of MarketingQuarter 2 – Module 8:Product, Services, andExperiencesWriter:####### MARK JOSEPH V. SANGIL, DBAMT-I SHS IN APALIT (Stand Alone I), Cluster VI Editors: JANE P. VALENCIA, EdD – Math/ABM Supervisor CHAIRMAN MARK JOSEPH V. SANGIL, DBA – MT- I GRACELA R. LABOS- MT...

Description

Senior High School Principles of Marketing Quarter 2 – Module 8:

Product, Services, and Experiences

Writer:

MARK JOSEPH V. SANGIL, DBA MT-I SHS IN APALIT (Stand Alone I), Cluster VI Editors: JANE P. VALENCIA, EdD – Math/ABM Supervisor CHAIRMAN MARK JOSEPH V. SANGIL, DBA – MT- I GRACELA R. LABOS- MT-I

What I Need to Know

This module was designed and written with you in mind. It is here to help you master the subject Principles of Marketing. The scope of this module permits it to be used in many different learning situations. The language used recognizes the diverse vocabulary level of students. The lessons are arranged to follow the standard sequence of the course. But the order in which you read them can be changed to correspond with the textbook you are now using After finishing this module, you are expected to:    

Define the characteristics and highlight the difference amongst products, services and experiences. Discuss the usefulness of product, service and experience. Identify and discuss the Product Life Cycle (PLC). Apply product, service and experience model to formulate strategies in the community setting.

What I Know

Directions: Choose the letter of the correct answer. Write the letter that corresponds to your answer on a separate sheet of paper.

1. Is anything offered for sale by a firm to buyers to satisfy their wants and needs. a. Events b. Experience c. Product d. Service 2. It includes the brand name, features, packaging and quality level. a. Actual product b. Augmented product c. Consumer product d. Core product 1

3. They are goods that are purchased for personal consumption and/ or for household use. a. Consumer goods b. Differentiated goods c. Industrial goods d. Undifferentiated goods 4. These are products that are purchased frequently, are usually inexpensive, and do not require much purchase effort and evaluation. a. Convenience goods b. Shopping goods c. Specialty goods d. Unsought goods 5. These are goods that require and usually large effort on the part of consumers to acquire. a. Convenience goods b. Shopping goods c. Specialty goods d. Unsought goods 6. This are consumer products and services that the customer compares carefully on suitability, quality, price and style. a. Convenience goods b. Shopping goods c. Specialty goods d. Unsought goods 7. It is an act or performance that one party can offer to another that is essentially intangible and does not result in any ownership of anything. a. Events b. Experiences c. Product d. Service 8. It is used in marketing to describe the inability to assess the value gained from engaging in an activity using any tangible evidence. a. Inseparability b. Intangibility c. Perishability d. Variability 9. It is used in marketing to describe the way in which service capacity cannot be stored for sale in the future. a. Inseparability b. Intangibility c. Perishability d. Variability 2

10.

It represents what buying the product or service will do for the customer. a. Events b. Experiences c. Product d. Service

Test II: DIRECTION: Write TRUE if the statement is correct and FALSE if it is not.

____________1. Defective packaging may contribute to loss of sales and product damage. _____________2. Products have life cycle consisting of four distinct stages; introduction, growth, maturity and decline. _____________3. In the introduction stage it begins with a permanent drop of sales. _____________4. Knowledge of the product life cycle concept may be useful in many aspects of decision-making in marketing. _____________5. Examples of services are dental check-up, and haircuts.

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Lesson

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Product, Services and Experiences

As you proceed to this module, you will understand the definitions of the different scope of marketing: product, service and experience, the different classification of products and product life cycle. Let us rewind and freshen up your brain by arranging the marketing vocabulary on our previous lesson. Write your answer on a clean sheet of paper.

What’s In

Notes to the Teacher This module is good for one week and it will discuss the scope of marketing: product, service and experience and its classification. Please inform students/learners to be extra careful in dealing with the activities so as not to fail the subject.

Look at the following jumbled words. Rearrange the letters to form the correct and proper word by looking and analyzing the questions below the jumbled words.

1. 2. 3. 4. 5. 6. 7.

SEIRTSUDNI NPSOTGINOII TAGKEPEESRE ICSDOMEHAGRP ENE SKTA MERSUONC KETARM PCHIARGOEG

__________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ 4

8. SURSE 9. ETGART ARMTEK 10. RSRELLEES

__________________________ __________________________ ________________________

1. This are business organizations that purchase goods and services for the purpose of producing other products and services or for use in their production and operating processes. 2. It is the process of communicating the image of a brand into the minds of consumers. 3. They are individuals whose positions allow them to screen and/or prevent supplier representatives and vital product/service information from reaching participants who perform roles in the organizational buying decisions. 4. It refers to the general characteristics of the population. 5. It involves the purchase of products or services that the organization has never bought before, or has not purchased for a long period of time. 6. It includes individuals and/or households that purchase products and services for personal consumption. 7. It divides the market by regions, cities, urban, and rural areas, coastal and central land masses, by density or areas with low, medium or heavy concentration of population, or by areas of the country with either relatively temperate or hot temperatures, among others. 8. They are individuals who usually initiate the organizational buying process after having identified a specific need in the department. 9. It is the most probable and most logical customers, and may likewise be its heaviest customers. 10. This are entities that buy goods and services in order to resell them at a profit.

What’s New ANALYZING IMAGES

DIRECTION: Carefully analyze and figure out the pictures below. Identify the different scope of marketing by writing P-Product, S-Service and EExperience. Write your answer on the space provided.

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1.

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2.

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3. __________________

4. __________________

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5.

__________________

6.

_____________________

7.

____________________

8.

___________________

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9.

__________________

10.

_________________

What is It Product Defined - is anything offered for sale by a firm to buyers to satisfy their wants

and needs. Products may be take any of the following forms:

1. 2. 3. 4.

A physical object like a toy or a kilo of pork; A service like a ferris wheel ride or a dental check-up; A place like London or Boracay; An organization like the Supreme Student Government (SSG) or the Philippine Marketing Association; 5. A personality like Manny Pacquiao and Kathryn Bernardo.

To maintain the interest of buyers, the physical products are most often provided with benefits like: (1) quality; (2) reputation of the manufacturer; (3) packaging; (4) credit; (5) information about the product; (6) warranty; (7) after sales service; and (8) delivery. With the foregoing statements, a product may now be defined more specifically, as follows:

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“A product is anything offered for sale by a firm to buyers to satisfy their physical, social, symbolic, and psychological wants and needs.”

Classification of Products Products may be classified into two categories: (1) consumer goods; and (2) industrial goods.

Consumer goods- are those intended for final consumption by consumers. They may be classified according to: (1) the rate of consumption and tangibility; and (2) the consumer’s shopping habits.

Rate of Consumption and Tangibility Based on the rate of consumption and tangibility, consumer goods are further classified as: (1) durable; (2) nondurables; and (3) services. Durable goods- are tangible goods which normally survive many uses. Examples are motorbikes, refrigerators and filing cabinets. Nondurable goods- are tangible products which are consumed in one or a few uses. Examples are ice cream, toothpicks, and petrol. Services- are intangible goods like activities, benefits, or satisfaction which are offered for sale. Examples are entertainment in movie houses and concerts, transport services, tailoring services, and haircuts.

Consumer’s Shopping Habits Based on consumer’s shopping habits, consumer goods may be further as: (1) convenience goods; (2) shopping goods; (3) specialty goods; and (4) unsought goods. Convenience goods- are those which are purchased with a minimum of effort. Many of them are readily available in many retail outlets. Examples are soap, bread, soft drinks and milk. Shopping goods- are those that are bought only after an effort to compare with other goods is made. Examples are radio sets, ready-towear suits, cellphones, and shoes.

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Specialty goods- are those that the consumers seek to buy and they are not willing or they are not able to accept substitutes. Examples are special medicines, jewelry, and exotic foods like (adobong kamaru) and (isaw). Unsought goods- are those that are not yet wanted by or are still unknown to the consumer. Because of the said reasons, consumers use no effort to seek them. There are two types of unsought goods: (1) the new unsought goods, and (2) the regularly unsought goods. New unsought goods- are really new ideas or products that the consumer still have to know to be motivated to buy. An example is the papaya soap when it was first introduced. Consumers did not know much about it, so it was not sought. Regular unsought goods- are those that stay unsought but not unbought forever. Examples are encyclopedias, educational plans, memorial plans, and life insurance plans.

Industrial Goods- are those used in the production of other goods. They are categorized as follows: 1. 2. 3. 4. 5.

Installations Accessory equipment Raw materials Component parts and materials Supplies

Installations- This term refers to industrial products with long life, are generally expensive, and they form part of the major capital equipment of an industrial firm. Examples are buildings, generators, computers, elevators, and others. Accessory Equipment- These are industrial goods that are used as aids in the production process. They have a shorter usable life than installations. Examples are hand tools and lift trucks in factories, fax machines, and desks in offices. Raw Materials- These are unprocessed goods that will become part of another product. Raw materials are of two types: (1) farm products; and (2) natural products. Farm products are those grown by farmers, while natural products are those which occur by nature. Examples of farm products are palay, tomatoes, eggplant, coconut and milk. Examples of natural products are fish, lumber, gold, diamond, coal and oil. Component Part and Materials- These are processed industrial goods that will still be used and become an actual part of the finished product. 10

Component materials are exemplified by paper for further processing into printed magazine, textiles into dresses, and flour into bread. Component parts are exemplified by tires mounted in motor cars, strings in a violin, and knobs on television. Supplies- These are items that are used as aids in the operating process but do not become part of the finished product. Among the examples are pencils, ink, paper clips, fasteners, and others. Levels of Products 1. Core or generic product- it represent what the buyer is really buying. 2. Actual or formal product- it represents the design, brand name, and packaging that delivers the core benefits to the customer. 3. Augmented product- it represents additional services or benefits of the actual product.

Branding -Is that marketing action which identifies and helps differentiate the goods or services of one seller from those of another. A consumer who uses a product and begins to like it, it will find less difficulty in purchasing the product again if he is provided with a brand to remember.

Brand- is a name, term, sign, symbol, or design, or a combination of these elements, that is intended to identify the goods or services of one seller or a group of sellers. Brand may either be: (1) legally registered; or (2) not legally registered. Legally registered brands are provided with legal protection called trademark.

Brands, whether legally registered or not, consists of two distinct parts: (1) brand name; and (2) brand mark.

Brand Name- This term refers to that part of a brand consisting of words, letters, and/or numbers that can be vocalized. Examples are Suzuki, UST, Tide, Close-Up, and Hundred Islands. Brand Mark- This refers to that part of a brand that appears in the form of a symbol, design, or distinctive coloring or lettering, and which cannot be vocalized. Examples are the popular companies like Nike, Starbucks and McDonalds.

Packaging - refers to all activities involved in designing and producing the container or wrapper for a product. The container or wrapper is the package. The package may include up to three levels of material briefly described as follows: 1. The primary package which the product’s immediate container. The 370ml. can containing Alaska milk is its primary package. 2. The secondary package which protects the primary package. The carton box containing two dozens of Alaska milk cans is its secondary package. 3. The shipping package which contains the secondary package or packages. It provides ease of storage, identification, and shipping.

Reasons for Packaging

There are several reasons for packaging products. Among them are:

1. It provides protection to product before and after they are in the possession of the intended users. Products need to be protected from the harmful effects of outside elements. Packaging serves to eliminate this problem. 2. It provides convenience to the user. Many products are now neatly packaged which provide convenience for use just anywhere. The effort exerted from date of purchase to actual use of the product is greatly diminished. 3. It provides safety. Products like insecticides may cause considerable harm useless they are contained in suitable packages.

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4. It provides economy to both the seller and the user. Buyers have a different quantity requirements for products. Some will need more in a single purchase, while some will need less. In any case, purchasing in various quantities is made possible by packaging. 5. It allows sellers to effectively promote the product. The package can be made to attract the attention of the prospective buyer and further provide vital information about the product. Labeling - it is the part of the products which provides information about the product and the manufacturer is called the label. It may be a part of the package, or a tag attached to the product.

Types of Labels There are four types of labels

1. The brand label- this label identifies the product of brand. Example is the word “Goodyear” indicated in some tires sold by dealers. 2. The descriptive label- This label provides information about the product; who made it, where and when it was made, its contents, how it is used, and how to use it safely. 3. The grade label- This label identifies the product’s judged quality with a letter, number, or word like “grade A” or premium grade.” 4. The promotional label- This label provides attractive graphics to help promote the product. Product Life Cycles

Products, like humans beings, have a life cycle which is referred to as the Product Life Cycle or PLC. The PLC refers to a product’s sales growth from the beginning to its peak, followed by a decline and its eventual withdrawal from the market. In more simple term, PLC is the period between the birth and death of a product. The PLC consists of four distinct stages: (1) introduction; (2) growth; (3) maturity; (4) decline. These stages are actually the manifestations of the effects of various forces affecting the life cycle, namely: (1) consumer demand; (2) competition; (3) government rulings. These forces are beyond the control of the firm and the influence of its marketing efforts.

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The Introduction Stage

In this stage, the product is introduced to the public. It is generally characterized by the following: 1. 2. 3. 4.

Slow growth of sales; Heavy promotional expenditures in relation to sales; Relatively high prices for the products; and Limited product offerings, like limited variations in sizes, color, and the like.

The Growth Stage

The growth stage in the PLC follows a successful introduction stage. The growth stage is characterized by the following: 1. Sales start climbing rapidly as distribution increases and the consumers are persuaded to try the product. 2. The ratio of promotional expenditures to sales decreases. This is due to the rapid increase in sales but without a corresponding increase in promotional expenses. 3. Prices tend to remain high except when demand stimulation is required and entry of competitors is discouraged. 4. New forms of the product appear, like new colors, new models, and new sizes. The Maturity Stage

When the growth in sales down, the maturity stage begins to take over. This stage is characterized further by the following:

1. 2. 3. 4.

Sales settle down as the product becomes well-known. Price reductions are used as a tool of competition. Competition is intensified; and The market becomes saturated.

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The Decline Stage

The decline stage begins with a permanent drop in sales. The stage is further characterized by:

1. A pruning of product models and variations to eliminate those not producing profits. 2. Promotional expenses are reduced; and 3. Plans for phasing out the product is made. Service Defined - is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership. Four major attributes of Service

1. Intangibility- Physical products are tangible. As such, they can be inspected by consumers prior to purchase. On the other hand, service are intangible. It would, therefore not be possible to “sample” a lawyer’s legal skills, or a doctor’s ability to handle a surgical operation before one decides to retain a lawyer or a doctor. 2. Variability- Because services are performed by human beings, no service provider can render the same service in exactly the same way every single time. A college professor, when giving the same lecture in two separate sessions, cannot use the exact words and gestures for both sessions. 3. Inseparability- Because services are rendered by people, the service provider must be present each and every time the service is provided. Services are rendered and consumed simultaneously. As a lawyer gives legal advice to a client, legal services are being “produced”, and simultaneously “consumed” by the client. 4. Perishability- Unconsumed services cannot be stored or wareho...