Consumer Goods:

 are those intended for final consumption by

consumers.

 Goods which satisfy our needs and wants

directly.
 Durable Goods:
 Consumer goods that can be used overtime
repeatedly.

 Tangible goods which normally survives many

uses.
 Nondurable Goods:
 Tangible products which are consumed in one
or few uses.

 Consumer goods that can only be used once.

 Services:
 Intangible goods like activities, benefits or
satisfaction which are offered for sale.

 Products or services that are produced and

consumed at the same time.
 Convenience Goods:
 Are those which are purchased with a
minimum effort.

Ex. Milk, soap, bread, soft drinks

 Shopping Goods:
 Are those that are bought only after an effort
to compare with other goods is made.

Ex. Electronics and Furnitures

 Specialty Goods:
 Are those that the consumers seek to buy
and they are not willing or they are not able
to accept substitutes.

Ex. Special medicines, jewelry

 Unsought Goods:
 are those that are not yet wanted by or are
still unknown to the consumer.
Types:
1. New unsought Goods- are really new ideas
or products that the consumers still have to
know to know to be motivated to buy.

2. Regular Unsought Goods- are those that

stay unsought but not unbought forever.
 Types:
1. Production Goods – are used in the
production of a final product.

2. Support Goods – help in the production

process of consumer goods such as
machinery and equipment.
 are any goods that are bought and used for
industrial and business use. They are
categorized as follows:
1. Installation -refers to industrial products with long
life, are generally expensive, and they form the
major capital equipment of industrial firm.
2. Accessory Equipment - aids in the production
process. Has shorter usable life than
installations.
3. Raw Materials - unprocessed goods that will become
part of another product.
Types:
1. Farm Products – Grown by farmers.
2. Natural Products – are those which occur in nature.
4. Component parts and Materials - processed industrial
goods that will still be used and become an actual part
of the finished product.
5. Supplies – items that are used as aids in the operating
process but do not become part of the finished
product.
 6. Services - are expense items that assist in
the operations.

Ex. Security Services, Consultancy Services

 The product is one of the variables in the
marketing mix and it can be unique so it will
be more attractive to buyers. When the
marketer does it, he is making his product
different from the others.

 The purpose of product differentiation is not

only to satisfy customers and make more
profits but to beat the competition.
1. Branding
2. Quality
3. Image
4. Product features
5. Packaging
6. Location
7. Promotion
8. Innovation
9. Difference Service Levels
 One of the job of the marketer is to make
sure that the product he is selling will provide
REAL satisfaction to the buyers.
 Another aspect of his job is to make it easy,
later on, for the satisfied customer to pick out
his product from among a wide assortment of
other goods. Most often this is achieved
through “Branding”.
 A brand is a name, term, sign, symbol, or
design or a combination of these elements,
that is intended to identify the goods and
services of one seller or a group of sellers.
A Brand can either be:
1. Legally Registered- are provided with legal
protection called Trademark.
2. Not Legally Registered
 Brand Name – refers to that part of the of a
brand consisting words, letters, and numbers
that can be vocalized.

Ex. Tide, SUZUKI

 Brand Mark – refers to that part of a brand
that appears in the form of a symbol, design,
or distinctive coloring or lettering, and which
can not be vocalized.

Ex. Pictorial Presentation of a boy appearing on

Alaska Condensed Milk.
 In a licensing agreement, the firm which owns
or controls a brand allows another firm to use
the brand in exchange for royalties or some
other form of payment. Licensing offers
much flexibility because the licensee is not
barred from using other options when
needed.
 When branding products or services, firms
have several options. These are:
1. Manufacturing Branding – is a branding strategy
in which the brand name for a product is
designated by the manufacturer.
Two Alternative Approaches:
a. Multiproduct Approach – also referred to as
blanket or family Branding Strategy, uses the
same Brand Name to cover a group of products.
 Buyers who have a positive experience with
the product will extend this favorable attitude
to other products with the same brand.

 The level of Brand awareness is raised and

can reduce the rate of advertising cost.
 requires the firm to provide each product
with a distinctive name.
Advantages:
 it is useful when each brand is intended for a
different marketing segment.

 There is no risk of one product’s failure

affecting another product in line.
 Also referred to as private labeling or private
branding, refers to the branding strategy of a
firm which manufactures products but sell
them under the brand name of a reseller.

 An advantage is the shifting of Promotional

costs from manufacturer to reseller.
 Refers to the use of the manufacturer and
reseller brands in a product. It is expected
that market segments attracted to the
manufacturer and to the reseller will
patronize the mixed Product.
 Is a branding strategy which lists no product
name, only a description of contents.

 This approach is applicable to rice, salt, sugar,

and charcoal.
 Refers to all activities involved in designing
and producing the container or wrapper for a
product.

 The container or wrapper is the package.

1. It provide protection to products before and
after as they are in the possession of the
intended users.
2. It provides convenience to the user.
3. It provides safety.
4. It provides economy to both the seller and
the user.
5. It allows sellers effectively promote the
product.
1. The brand Label – this label identifies the
product or brand.
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”, “grade 3”, or
“Premium Grade”.
4. The Promotional Label- this label provides
attractive graphics to help promote the
product.
 One of the product components that attract
customers to patronize a product is the
warranty, which is a statement explaining
what the seller promises about the product.
 1. Express Warranties – are written
statements of a manufacturer’s liabilities for
products deficiencies.
 Express Warranties may be:

 Limited-Coverage Warranty – is a
manufacturer’s statement indicating the
bounds of coverage and noncoverage of
deficiency found in the product.
 Full Warranty – is a statement of liability by
manufacturer that has no limits of
noncoverage.
2. Implied Warranties – are those that assign
responsibility for product deficiencies to a
manufacturer even if the item was sold by a
retailer.
1. Introduction Stage – in this Stage the product
is introduced to the Public. It is generally
characterized by the following:
a) Slow growth of sales:
b) Heavy promotional expenditures in relation
to sales;
c) Relatively high prices for the products; and
d) Limited product offerings, like limited
variations in sizes, color, and the like.
 The growth stage in the PLC follows a
successful introduction stage.
 The Growth Stage is Characterized by the
Following:
1. Sales start Climbing Rapidly
2. The ratio of promotional expenditures to
sales decreases
3. Prices tend to remain high
4. New forms of product appear
 When the growth in sales slow down, the
maturity stage begins to take over.
 This stage is Characterized further by the
following:
1. Sales settle down as the product becomes
well-known
2. Price reductions are used as a tool of
competition
3. Competition is intensified
4. The market becomes saturated
 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 producing profit

2. Promotional expenses are reduced

3. Plans for phasing out the product is made

 The concept of PLC is important to the
marketer in the sense that it provides him
with a guide in adapt appropriate marketing
strategies.

 Knowledge of PLC concept may be useful in

many aspects of decision- making in
marketing.