Exam (elaborations)
OTE2601 ASSIGNMENT 01 (543387)
- Institution
- University Of South Africa (Unisa)
OTE2601 ASSIGNMENT 01 ()
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FULLL NAMES:STUDENT NUMBER:
UNIQUE NUMBER: 543387
MODULE CODE: OTE2601
ASSIGNMENT: 01
MODULE NAME: ORIENTATION TO TEACHING
ECONOMIC AND MANAGEMENT SCIENCES
DUE DATE: 16 MAY 2023
,QUESTION 1
In a proposed marketing plan, everything is included that must be done to
convey the product or service to the consumer and/or the target market.
Elaborate on the 4 P instruments or steppingstones that are necessary to
make the plan functional.
a) The product
A product may be defined as a combination of utilities which satisfy needs and are
offered by the business to the consumers. The consumers can take note of it, obtain
it and use it. This refers to the product or service being offered to the target market.
The product should meet the needs and wants of the target market, and have a
unique selling proposition that sets it apart from competitors.
When establishing a new (own) business, the entrepreneur should, in his or her
choice of product, concentrate on consumer needs about products. These products
are immediately available for use. For example, a smart phone closer to a school or
university can sell as a hot cake.
Firstly, consumer products can, depending on their durable qualities
(characteristics), be divided into durable and non-durable products. The durable
products (e.g. furniture) are used over long periods, while non-durable consumer
products (e.g. sweets) have a short lifespan.
Secondly, these products can, on the basis of consumer purchasing habits, be
divided into convenience, selective and speciality products. Convenience products
(e.g. groceries) are products which the consumer knows well. Selective products
(e.g. jewellery) are products which the consumer wants to compare at several shops
for suitability, quality, price and style, before deciding on what to purchase. Speciality
products (e.g. motor cars) are products with unique characteristics which some
consumers will make a special effort to purchase.
A product is a set of benefits that address the needs of customers and are offered by
a company. Customers can recognize, acquire, and use the product. When starting a
new business, entrepreneurs should focus on the products that meet the customers'
demands. These products are readily available for consumption.
, Consumer products can be categorized into two types based on their durability:
durable and non-durable. Durable consumer products have a longer lifespan and are
used over an extended period, while non-durable consumer products have a shorter
lifespan and are meant for immediate use.
In terms of consumer purchasing habits, consumer products can also be divided into
three categories: convenience, selective, and specialty products. Convenience
products are well-known to the consumer and are readily available. Selective
products require the consumer to compare various options in terms of quality, price,
style, and suitability before deciding. Specialty products have unique characteristics
that some consumers will go out of their way to purchase. Additionally, factors such
as branding and packaging also play a role in the consumer's decision-making
process.
For example, a bag of chips can be considered a convenience product, while a
camera could be a selective product. A handmade, artisanal coffee mug might be
considered a specialty product.
b) The price
The price of the product or service should be set based on the target market's ability
to pay, the cost of production, and the prices of similar products offered by
competitors. A good pricing strategy should aim to maximize profits while still being
competitive. Price may be defined as the amount of money the consumer hands over
in exchange for a product. Price is closely related to the value and use the consumer
obtains in exchange for the money sacrificed, for example a price for a mobile
phone. The price of a product is determined by taking into account, among others,
the following factors:
• the cost price of the product
• affordability
• the running costs of the business
• a reasonable profit
• competitors’ prices
• demand/supply
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