WHAT IS PRODUCT
If the goal of marketing is to find a need and fill it, the heart of marketing is
finding what products people want and seeing that they get them. Product is one
of the four P’s of the marketing mix.
What is product? The question is more complex than it seems.
Product is everything that one receives in an exchange, including all tangible and
intangible attributes and expected benefits. The basic product may be a good, a
service, or an idea or any combination of these three. When consumers purchase
a product, they are buying the benefits and satisfaction that they think the
product will provide.
A good is a real, physical thing that we can touch.
A service is the result of applying human or mechanical effort to a person or
thing. Basically, a service is a change we pay others to make for us. A real estate
agent’s services result is a change in the ownership of real property.
An idea may take the form of philosophies, lessons, concepts, or advice.
Often, ideas are included with a good or service. Thus we might buy a book (that
is a good) that provides ideas on how to lose weight.
Products can be grouped into two general categories: consumers and
industrial. Products purchased to satisfy personal and family needs are consumer
products. Those bought for use in firm’s operations or to make other products are
industrial products.
Consumer products can be subdivided into convenience goods (minimum
shopping effort), shopping goods (where people compare price and quality), and
specialty goods (where consumers will go out of their way to get them).
Industrial products can be placed in six categories: raw materials, components,
accessory equipment, installations, supplies, and services.
Convenience goods are best promoted by location; shopping goods by some
price quality appeal; and specialty goods by word-of-mouth. Industrial goods are
usually sold by salespeople in the field.
In other hand a product is much more than a physical object. A product also
involves the price, the brand name, the quality, the satisfaction in use, and more.
A product is what a buyer or potential buyer perceives it to be.
This definition of the term product is based on the concept of an exchange.
In a purchase, the thing that is exchanged for the product is money – an amount
of money equal to the price of the product. When the product is a good, the price
may include such services as delivery, installation, warranties, and training. A
good with such services is not the same product as the good without such
services. In other words, sellers set a price for a particular “package” of goods,
services, and ideas.
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A product item is a specific version of a product that can be designated as a
distinct offering among an organization’s products. A product line is a group of
closely related products items that are considered a unit because of marketing,
technical or end use considerations.
VOCABULARY
1. goal
ціль
2. exchange
обмін
3. tangible attributes
видимі, матеріальні якості
4. intangible attributes
невидимі якості
5. expected benefits
очікувана вигода
6. goods and services
товари та послуги
7. to apply
застосовувати
8. human or mechanical efforts
людські або механічні зусилля
9. real estate, real property
нерухомість, нерухоме майно
10.ownership
володіння, власність
11.to lose weight
схуднути
12.consumer products
споживчі товари
13.to purchase
купувати
14.to satisfy
задовольняти
15.convenience goods
товари повсякденного попиту
16.shopping goods
дорогі товари
17.specialty goods
фірмові товари (спеціалізовані)
18.accessory equipment
допоміжне обладнання
19.installation
установка, спорудження
20.supplies
допоміжні матеріали
21.brand name
торгова марка
22.to promote
сприяти продажу товару
23.definition
визначення
24.amount
кількість
25.to be equal
бути рівним
26.delivery
поставка
27.warranty
гарантія
28.word-of-mouth
усно, на словах
29.perceive
розуміти, відчувати
30.product item
одиниця продукції
31.product line
група однакових товарів
32.designate
зазначити
33.industrial products
товари виробничого призначення
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Task1. Suggest the Ukrainian for the following words and word combinations
from the text:
Concept of exchange; amount of money; potential buyer; satisfaction in use;
the heart of marketing; tangible and intangible attributes; delivery installation;
product item; involve; shopping effort; to compare price and quality; by word-ofmouth; purchaser real estate; touch; to satisfy personal and family needs;
convenience goods; shopping goods; industrial goods; specialty goods; accessory
equipment; brand name; perceive.
Task2. Find in the text English equivalents to Ukrainian words and word
combinations.
Поставка; гарантія; людські або механічні зусилля; очікувані вигоди;
товари повсякденного попиту; концепція обміну; споживчі товари; кількість
грошей; порівнювати ціну і якість; усно; задовольняти особисті потреби;
дорогі товари; фірмові товари; бути рівним; допоміжне обладнання; сприяти;
одиниця продукції; група однакових товарів.
Task3. Match the words in column one with their synonyms in column two:
to satisfy
trade name
benefit
supply
goal
advantage
brand name
barter
amount
safeguard
warranty
objective
to promote
to buy
exchange
expensive
delivery
encourage
to purchase
to meet
shopping goods
quantity
Task4. Replace the Ukrainian words and phrases by appropriate English
equivalents.
1. The same item can be both a (споживчий товар і товар виробничого
призначення).
2. Marketers think in terms of how (покупці) generally behave when
(купуючи) a specific item.
3. All products, whether they are goods or not, possess (нематеріальні)
qualities.
4. Often manufacturers of (головного обладнання) build up long term
relationships with their (клієнтами) so that they can better adapt to their
needs.
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5. Buyers actually plan (покупку) of a (фірмового товару).
6. Specific items in a (групі однакових товарів) reflect the desires of different
target markets or the different needs of (споживачів).
7. Large sums of money are required to advertise (дорогі товари).
Task5. Study the following vocabulary.
To turn out – виробляти продукцію
Innovative – новаторський
Obsolete – застарілий
Unique – унікальний
In-house – в межах компанії
To build up – нарощувати
Disposable – одноразовий
Task6. Complete the sentences with the words from the brackets below.
1. Consumers enjoy new and ______ products that make their lives easier.
2. ______ contact lenses are easy to take care of because you wear them once
and then throw them away.
3. Our company prides itself on its ______, which allows us to perform a
variety of services for our clients.
4. Once we ______ our cash reserves, we’ll be in a better position to hire
additional staff.
5. We have the staff we need to produce the publications ______ instead of
having to hire an outside vendor.
6. Handmade jewelry is ______ because no two pieces are exactly alike.
7. Computers become ______ when they can no longer meet our needs.
8. His ______ is in advertising; he’s very experienced in it.
9. We’ve going to ______ the packaging so it’s more appealing to consumers.
10.If we use the full capacity of the factory, we can ______ hundreds of pairs
of sunglasses a day.
( redesign; in-house; flexibility; turn out; innovative; obsolete; build up;
expertise; disposable; unique)
Task7. Read the following passage. Then work in pairs arguing the necessity for
the product to be innovated.
Our product line needs to be diversified. We cannot depend on the past
success of our disposable razors. We need to concentrate on developing kinds of
razors for different purposes. If we don’t, we’ll find our razors obsolete and
ourselves out of work. Recent improvements in manufacturing technology will
allow us more flexibility in design. By subtly redesigning our existing razor we can
turn out a disposable razor for all ages, both sexes, and for any body part.
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