MEANING OF PRODUCT
Everyday we see many types of products and use them but it is not easy to define a product. Though products are all around us. Due to this fact we cannot give a proper meaning or definition of a product.
The difficulty to define a product is that a single product doesn’t have same importance. Some countries have more need of this or that product is more useful for them however, it does not mean that other countries will have same importance of that product because that country does not need that product or that product is not useful like other products for that country.
For example : A refrigerator is more important or useful for countries which having hot environment than the countries which have cold environment. As refrigerator is useful in the United States because people of there like to use frozen foods. Yet in developing countries food shopping most commonly occurs on a daily basis. A refrigerator is a status symbol in developing countries and they use refrigerator for keeping perishable foods for a short-time.
On the basis of above information we have to give a definition which must cover all necessities and luxuries. The definition must be included qualities that delight a customer or satisfies a customer. A customer satisfied by the qualities of product if a product have the attributes to make a customer satisfied. The definition must include attributes of product.
For example : The attributes of a bathing soap are fragrance, skin care, mildness, and freshness.
The attributes of different soaps are different and each brand made to fulfil the demand of different customer classes.
The attributes of a mobile phone wide network, coloured screen, light weight more phone book capacity to store contact number, and message storing capacity.
People around the world would prefer ifferent sets of attributes for their use. People like to buy different sets of attributes not only for status symbol but first of all they buy product for satisfaction. Tha setisiaction is derived fron quality and attributes of product.
OBJECTIVES OF PRODUCT
The objectives of product are as follows:
1 Stability. Every company wants stability or wants to stable that conditions and earnings. Company manufactures and launches he demand of customers and also make necessary development to the demand stable. A company does not want business variability.
2. Growth. The objective of a product is to expend or grow the company and demand of customer. A company increases the number of customers through products. Product intended to satisfaction of customer. The growth of company helps it to enter into foreign market.
3. Profit. Profit is the main objective of product. Every company tries to maximise profit through better quality of product. If a product does not provide profit company will stop producing because company does not want to bear loss.
4. Return on Investment. Before introducing a product, company investe a big part of money in investment as company spends money on advertiseruent and spreads the information about new product. And more people go for purchase that product. When more customers do purchase the product the profit from large scale sale compensate the expenses of advertisement. So every company wants more return on investment.
5. Desired Position. Every company wants to become the leader of market. This is possible when that company satisfies customers and complete their demand. Customer wants better quality and 100 per cent satisfaction. The company does this customers like to purchase their product and give that company a desired position which was assumed by the company.
MEANING OF PRODUCT PLANNING
According to Stanton W.J., “Product planning embrances all activities which enable producers and middle man to determine what should constitute a company’s line of product”.
Product planning can be divided in two categories: (i) issues of day to-day, (ii) strategic issues.
Need of day-to-day arises in Middle East market because there climate requires that windows to be opened all days and wind which comes from opened windows carry a lot of dust into the houses. In this area need to protect working washers and dryers also need extra precaution from dust. Local managers handle day-to-day issues.
Strategic issues cannot be handled by local managers. It needs major commitments. Big corporations have taken up these commitments.
The decision about product planning depends on the individual situation. The situation decides that planning should be based on day-to-day issues or strategic issues.
The objective of both categories is to make satisfied the customer. The planning decides the qualities of product or service which fulfills the demands of several customers. To know the choices of customer the research of world market is very useful. Research makes the analysis easy. The result of researches are the basis for determine the product planning of world market. Financial specialities, social and cultural importance, consumers interest and the rules and laws of that nation should be considered before making a product planning.