mrktng mgmt assignmnt

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ASSIGNMENT - 4

Subject

MARKETING MANAGEMENT

MATS UNIVERSITY, MATS LAW

SCHOOL

Assignment Allotment Date: 26thAug, 2014

Assignment Submission Date: 01stSep, 2014

Submitted To

Ms. Anushree Bhattacharya

(Assistant Professor)

Submitted By

Stuti Baradia

(Student)

BBA LLB, Sem 3 (2ndyear)


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Question:

Write a note on Tangible and Intangible product withexamples.

Synopsis:

Introduction

Marketing Mix

Product

Product: A part of the Marketing Mix

Product Mix

Product- defined with example

Product Classification

Tangible product- explained with example

Intangible product- explained with example

Selling the tangible & intangible (Marketing)

Conclusion


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Introduction

Inmarketing,a product is anything that can be offered to amarket that might satisfy a want or

need.

Marketers have four tools to use to develop an offering to meet the needs of their targeted

customers. Collectively they are called the marketing mix.

Marketing Mix:You may have heard of the "four Ps" of marketing: product, price, place,

and promotion. Collectively these are called the marketing mix. More comprehensively they are

viewed as:

product, service, or program - something of value you are offering the customer, client, or

park visitor

price - what the customer, client, or park visitor pays (direct costs are financial, indirect

or alternative costs are such things as time it takes and the things people give up if they

choose your offering)

place, distribution, location, or accessibility - where the transaction takes place, perhaps

in a park

promotion or communication - this is how you inform the target market about the benefits

in your marketing mix

Product:Theproduct, service, or programincludes both tangible and intangible elements. The

tangible, of course, are those things that the customer can see, touch, feel, taste, or smell. The

intangible include such things as the image of the offering ... which includes the image of the

organization making the offering, the psychological aspects of pricing (high price to many

customers is equated with high quality - and vice versa).
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Market_(economics)http://en.wikipedia.org/wiki/Market_(economics)http://en.wikipedia.org/wiki/Marketing


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Product: A Part of the Marketing Mix

Productis actually a complex, multidimensional concept. It is defined broadly enough to include

services, programs, and attitudes and includes whatever you are offering the target market in an

effort to meet their needs. It involves all tangible and intangible aspects of the good or service

you offer your target market. These are things which have value and are balanced against the

value you expect to receive from the target consumer.

Product M ix:Every organization has a product mix that is made up of product lines. Product

lines contain product items. Each product item is a product or service as well as

the brand, package, and services associated with it.

Product

Any tangibleor intangiblegood or service that is a result of aprocess and that is intended for

delivery to a customer or end user.

EXAMPLE

A soccer ball is an example of atangibleproduct.

An example of an intangible product is insurance.
https://www.boundless.com/definition/process/https://www.boundless.com/definition/tangible/https://www.boundless.com/definition/tangible/https://www.boundless.com/definition/process/


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Product Classification:

Products can be Tangible product and Intangible product

Definitions

A product can be classified as tangible or intangible. A tangible productis a physical object that

can be perceived by touch such as a building, vehicle, gadget, or clothing. An

intangible productis a product that can only be perceived indirectly such as an insurance

policy.

There are two types of products tangible and intangible. Although each of the two might

result in a satisfied customer, how to marketing and advertise each one are vastly different.

Tangible items are those we can see, touch, or smell. I can hold a DVD in my hand therefore

its a tangible item.

An intangible item is one I cant see. For example I can hold the life insurance papers in my

hand, but thats not what I bought. I bought protection for my family that I couldnt physically

see, touch, hear, taste, or smell.

Tangible Product

Atangible product is a physical object that can be perceived by touch such as a building, vehicle,

or gadget. Most goods are tangible products. For example, a soccer ball is a tangible product.

A tangible product is one that exists in space, one that you can perceive with your senses. It is an

object, as opposed to a service or an experience. Tangible products are created with materials.

Cheese is an example of a tangible food product, for example. It is created with physical

materials, including ingredients such as milk and rennet.

Tangible goods are physical products defined by the ability to be touched. They are distinct from

intangible goods, which may have value but are not physical entities. Goods that are tangible

play a large part in retail, though the purchasing of intangible goods is now widely available

through the Internet. They are also distinct from services, such as a spa treatment, since the result

of a service is not a tangible product.
https://www.boundless.com/definition/tangible-product/https://www.boundless.com/definition/tangible-product/


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Goods that are tangible include anything that can be physically touched, including things like

printed books, CDs and DVDs, lamps, groceries, and baseball bats. One of the easiest ways to

determine whether a good is tangible or not is to ask if a person could physically touch it or pick

it up. If the answer is yes, the good is tangible.

Digital files, though technically goods, are examples of intangible products. Downloaded video

games, applications, music files, or movies cannot physically be touched. Though they can be

bought and sold just as easily as tangible items, digital files are not inherently physical. If a

person buys music files and burns them onto a CD, however, he or she has created a tangible

product, the finished CD, from initially intangible goods.

One of the benefits of tangible products is that they are often easier to return and track than

intangible items. Returning a sweater to the store often requires only that the owner has not

damaged it and has kept the tags or receipt as proof of purchase. Returning an intangible good,

on the other hand, can be much more complicated.

If a person downloads a music file, the opportunity for returnfraud is enormous, as there is no

way for the merchant to track whether the person has copied or burned the file before attempting

to return it. With traditional computers, it is also usually impossible for a merchant to remove a

file from a remote computer once it has been initially purchased or downloaded. For this reason,

intangible products often provide samples or free trial periods so that the buyer can be sure of

what he or she is purchasing.

Tangible goods may have the downside of requiring more initial cost. Creating aDVD, for

instance, requires not only the original files or film print, but also the cost of the disc, packaging,

shrink-wrapping, and shipping. Some items, such as groceries, may also have an expiration date,

making them valuable only for a short time. On the other hand, tangible products that do not

expire often have the chance to remain in the market longer, thanks to the ability to resell

second-hand goods.
http://www.wisegeek.org/what-is-fraud.htmhttp://www.wisegeek.com/what-are-the-different-types-of-dvd.htmhttp://www.wisegeek.com/what-are-the-different-types-of-dvd.htmhttp://www.wisegeek.org/what-is-fraud.htm


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Sell ing the Tangible

Remember that the tangible item is something I can touch or visualize. A car, fountain pen, sofa,

etc. I can evaluate these product based on visual comparisons and the benefits they provide. This

is the key to selling tangible products. People dont buy features they buy benefits. A feature is

something a product has such as a four door automobile. The four doors do not become a benefit

unless you need four doors. Otherwise they are something that you pay extra for, but dont

benefit from. Benefits also offset price in the mind of the consumer. Each benefit creates a value

to the customer. Each feature, that has no benefit to the customers, decreases the value.

Intangible Product

An intangible product is a product that can only be perceived indirectly such as an insurance

policy. Intangibledataproducts can further be classified into virtual digital goods ("VDG"),

which are virtually located on a computer OS and accessible to users as conventional file types,

such as JPG and MP3 files. Virtual digital goods require further application processing or

transformational work by programmers, so their use may be subject to license and or rights of

digital transfer. On the other hand, real digital goods ("RDG") may exist within the

presentational elements of a data program independent of a conventional file type. Real digital

goods are commonly viewed as 3-D objects or presentational items subject to user control or

virtual transfer within the same visualmediaprogram platform. Services or ideas are intangible.

Most companies that sell goods sell tangible products. This ranges from construction products to

home-care goods to agricultural products. However, with the rise of the telecommunications and

technology sectors, more companies sell intangible products than ever before. Intangible goods

differ from services. Although services often rely on intellectual know-how or other intangible

goods or assets, a service is not a good in and of itself.
https://www.boundless.com/definition/data/https://www.boundless.com/definition/media/https://www.boundless.com/definition/media/https://www.boundless.com/definition/data/


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I ntangible Good Defi ned

An intangible good is good that is not tangible, meaning it is a non-physical item that you

typically cannot perceive by the senses. You cannot feel, smell, taste, hear or see it. The value of

intangible goods derives from intellectual or legal rights and from the value they add to the other

goods or assets. Intangible goods were less common in the industrial era but are relatively

common in the digital era.

I ntangible Goods Overview

Since intangible goods are not physical, they cannot be destroyed by acts of nature, although

they can be expropriated, or taken over by a country's regime. Intangible goods and assets can be

classified into two separate categories, limited life and unlimited life. Intangible goods with a

limited life include copyrights and patents, which expire after a defined period of time.

Intangible goods with an unlimited life include trademarks and knowledge, which never expire.

Uses of I ntangible Goods

Intangible goods are assets but not considered inventory. Since their value can be hard to

quantify, you typically cannot use them as collateral for loans. Your company can unlock the

value of intangible goods through salable physical goods including use of copyrights to publish

books, the use of patents to produce drugs or the use of name recognition to brand commodity

products.

Examples:Copyrights and Reputation

An example of an intangible good is a copyright. A book or music that are licensed are tangible

products, but the rights to them are intangible. As an author, artist or company, you can licenseyour copyright to others and generate revenue from those licensing fees. Another example of an

intangible good is reputation. If a company has a strong, positive reputation in one industry, it

can help a company that has less visibility in that industry gain customers and revenues. This is

typically done through co-marketing or co-branding, where one company leverages the

reputation of another.


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Digital Content

In today's world, much information is delivered over the Internet. As the world goes increasingly

digital, the level of digital content increases. All of the digital content delivered over the Internet

is intangible goods. This includes intellectual content delivered as e-books, downloadable music

files and downloadable software. You can also convert intangible goods to services, including

subscription services for software as a service,, which is accessible online as long as you pay the

subscription fee.

Sell ing the I ntangible

Based on what you just read about selling the tangible you might think it would be much harder

to sell an intangible product or service. And in some respects you would be right. The challenge

of marketing and selling intangible products is that you have to paint a word picture for your

customer. They cant see or touch your product. If you are selling an insurance policy you have

to be able to take your customer into the future and show them that, if you are no longer around,

the family wont be out in the street. Intangible selling is emotional selling. Here emotion creates

the value. Yes, there are features, benefits and price in intangible sales too. Customers buy

intangible products based on how that product makes them feel. There is some logic involved too

but when logic and emotion come into conflict, emotion always wins.


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Conclusion

Marketing is an art as much as it is a science. Those businesses that do their own

sometimes fall into the trap, that no matter what the product or service might be,

all marketing is done the same way. If you are guilty of following this philosophy

then I have some bad news for you. You may not be in business a year from now.

There are vast differences between the products you produce and the services you

sell.

END OF ASSIGNMENT - 4

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