Notesale: Turn your study into money

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Introduction
As discussed in the introduction, the marketing mix consists 4 important p’s
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A product has
vital aspects that are involved in completing the whole process
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The
following page explores in detail what a product is and the different types of
products that an aspiring entrepreneur can venture into
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You choose and classify the type of
product you want to offer according to your target market
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Furthermore according to Nieuwenhuizen (2011:117), a
product is anything that an organisation offers to potential customers which
might satisfy a need, whether tangible or intangible
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A product is an essential part of the business because it can
make or break your business
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Tangible products are items you can see, touch and even consume and are
broken up as follows:
•  DURABLE PRODUCTS- Long lasting, expensive, complex, long lifespan
and not consumed quickly
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e
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•  NON DURABLE PRODUCTS- Consumed over a short period
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They have competitive pricing
Intangible products cannot necessarily be seen, these are called services
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The
challenge for business owners to show the value of whatever service
they are offering
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(Nieuwenhuizen, 2011:117)
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Consumer
products can be divided into 3 (Nieuwenhuizen, 2011:119)
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They are normally manufactured in bulk and are
affordable
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e
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•  Speciality product- Speciality items are high priced exclusive items
that are made either for a niche market, customized or made on
order i
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David Tlale dress

Industrial products are bought to make other products or providing other
services
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•  Used to produce other products
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last a long

•  Need lots of servicing and maintenance
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• 

Classified as raw materials or processed materials
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For example potatoes eventually potatoes chips
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For example bolts, spark plugs etc
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For
example, pens
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Foe example stationery, oil etc
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For example office cleaning, catering, waste removal, market
research and auditing services
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“There are no set rules into what what your product service mix should be
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A product offering or mix can
vary from 1 item to many items sometimes into different gender items i
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boys
and girls pyjamas
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A product mix can also
be determined by your target market by their needs and buying patterns”
(Miss Fezile, 2015)

What is a product mix?
According to Nieuwenhuizen (2011:121), an organization with a variety of
product lines has a product mix/product offering
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Product Line
A product line is a group within the product mix that contains similar
product items i
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men's clothing store

their product line will include

shoes, jackets, shirts trousers, suits and accessories
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For example if you are selling men's
suits, within suits there will be a specific style and brand

Remember!
•  The more product lines that your business has, the wider your product
mix
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For a new small business it is wise to keep your product mix small as this
will make your range offering more focused
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This will also save you from paying too much storage fees
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Some
business offer only pure service products, for example insurance
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A business can also offer a
combination service where you sell paint and you also have a team that painters
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For example Waltons the stationery store, direct mail
businesses
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This may range from
office equipment, home appliances or computers
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e
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•  Pure Service- Pure service does not have any supporting products
needed
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The overall business objectives- This will solely depend on who are you are
targeting
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e
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Also your business sales plan and market share plan
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People tend to shop down by buying cheaper but fashionable
merchandise
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Competitors actions- Offer different merchandise or find a niche market
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Product considerations- In other words this means “product expansion”
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For example a leather briefcase manufacturer has the option of expanding to
belts by using existing machinery of his/her core product slows down
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The product doesn't’t
necessarily need to be related
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Product Specialisation- When you identify one product that you want to
specialize in
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Product Simplification- This is done when you want to reduce costs
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Product Differentiation- This is when you are trying to make a product which
is the same as another which also targets the same target market more
competitive by doing a lower price promotion
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Ideally that product is made to be
replaced by another
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e
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high heel sandals in
winter
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Conclusion
When a business has done all the research about the type of product or
service they want to offer and they have considered all factors involved
in making product decisions
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Also guarantees and warranties must be taken into
consideration and this section is discussed in the following chapter
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Mdletshe for Business
Studies 2, Module 1 Marketing and Merchandising
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(ed) 2011
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Second
Edition
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Philip Liebenberg

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