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Introduction
We are now focusing on the major elements of the marketing mix, the ingredients of the marketing mix.
First element...The Product!!
Product Planning refers to the systematic decision making related to all aspects of the development and management of a firms products including branding and packaging.
Each product includes a bundle of attributes capable of exchange and use.
Product definition:
A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value.
Differences between Goods and Services
Goods are tangible. You can see them, feel them, touch them etc.
Services are intangible. The result of human or mechanical efforts to people or objects.
Major distinguishing characteristics of Services:
• Intangibility-major component of a service is intangible
• Pershibality-many cannot be stored for future sales Airline/Amusement ride
Number of hair cut hours in one week: i.e., if Christies employs 3 people, who work forty hours per week, they have potentially 120 hair cut hours to offer. If they do not have any customers at a particular period during the day, they will lose the opportunity to cut hair at that time and therefore the opportunity to generate revenue...the opportunity has perished...they no longer have the ability to earn revenue from 120 hair cut hours that week!!
• Inseparability-customer contact is often the integral part of the service...Legal services/hair dresser, therefore often a direct chann ...