A product is a combination of physical, service, and symbolic attributes designed to create utility and benefit for buyers. Most people think of a product as the “thing” they purchase, but as the definition above implies, a product is much more than the physical item or direct service purchased. Good marketers recognize that people do not purchase products; they purchase benefits, utility, wants, and satisfaction. When developing new products or selecting products to offer to their TARGET MARKETS, marketers think in terms of what their customers want or need. In addition to the physical item, a product includes BRANDS, PACKAGING, design, color, WARRANTY, and SERVICES. Brands enhance a product’s image and recognition; many new products are purchased based on consumer satisfaction with other brand-name products purchased from the same company. Packaging has many functions, including protection, facilitating shipping, SALES PROMOTION, and meeting environmental concerns or requirements. Product design can appeal to either functional needs or aesthetic desires. Color is often an important consideration in consumers’ purchasing decision and should be considered in product development. Henry Ford once said that customers could have any color car they wanted as long as it was black. While Ford focused on production efficiency and keeping COSTS and pricing affordable, Alfred Sloan of General Motors realized that consumers preferred to choose the color of their car. Similarly, for decades a major contributing factor to the success of Sears was their warranty and service offerings. Customers knew they could trust Sears to honor and even extend their warranties and to service the machines and appliances they bought. Marketers divide consumer products into four categories: convenience, shopping, specialty, and unsought products. For each category of products, marketers develop different marketing strategies. Convenience goods are things people purchased frequently or impulsively, with minimal comparison of alternatives. Impulse items (snack foods, drinks, candy), everyday items (milk, bread, gasoline), and emergency items (batteries, home medical supplies, minor home-repair items) are all convenience goods. The major marketing consideration for convenience goods is availability. Since consumers do not compare choices or do price comparisons for convenience goods, the key to success for marketers of convenience goods is widespread distribution and point-of-purchase promotion of their products. Shopping goods are products that consumers purchase after comparing alternatives. Typical shopping goods include electronic equipment, automobiles, and appliances. These products are purchased less frequently than convenience goods; more time is spent comparing price, quality, and features; and location is fairly important to consumers’ consideration of alternatives. Marketers of shopping goods emphasize ADVERTISING to create consumer awareness of their offerings and PERSONAL SELLING to demonstrate their products’ features and promote the differences between their products and those of competitors. The marketer’s reputation and store atmosphere are also important considerations to consumers. Specialty products are goods consumers seek out and choose for their uniqueness or status value. Specialty goods include luxury cars, designer apparel, and custom home furnishings. Since consumers seek out marketers of specialty items, distribution and location are less important. Store image and atmosphere ave very important, and customer service and personal selling are critical to success in selling specialty products. Marketers of specialty products like Waterford crystal, Rolls-Royce cars, and Rolex watches will intentionally limit the number of retail outlets for their products and scrutinize retailers who market their merchandise in order to maintain their status image. Unsought products are goods and services people need but do not want. There is an old saying, “There are only two sure things in life, death and taxes.” Funeral services and tax preparation are two examples of unsought goods, along with the oxymoronically named life INSURANCE. Because unsought goods are things people need but do not want to purchase, marketers of these products have to design their promotional messages craftily and use considerable personal-selling efforts. Advertising messages for both funeral planning and life insurance appeal to peoples’ sense of responsibility and to their desire to benefit their loved ones.
See also MARKETING STRATEGY.