LESSON 4A

THE POSSIBLE PRODUCT/S OR

SERVICE/S
THAT WILL MEET THE NEED
CONCEPTS ABOUT PRODUCT AND SERVICE
A product can be defined as anything that we can
offer to a market for attention, acquisition, use or
consumption that could satisfy a need or want.
However, the definition of product does not only
involve tangible goods such as a car, a fridge or a
phone.
The definition is extended to include intangible
objects as well, because they can be offered to a
market too. Therefore, the broad definition of product
includes services, events, persons, places,
organizations or even ideas (Claessens, M., 2015).
Services are special form of product which consists of
activities, (e.g blood letting activities) benefits offered
for sale (e.g health related services)that are intangible
and do not result in the ownership of anything. A service
can thus include banking, airline travel, communication
services, hotel services, travel and tour, skills trainings
and seminars and so on (Claessens, M., 2015).
 therefore:

A product is a tangible item that is put on the market for

acquisition, attention, or consumption, while a service is an
intangible item, which arises from the output of one or
more individuals (https://corporatefinanceinstitute.com).
 EXERCISES :
Part I. Identify whether the described in each number is a PRODUCT or SERVICE/S

1. It is intangible.
2. Quality standards can be attained.
3. It is very difficult to attain quality standards.
4. It may be an asset sometimes, e.g., fridge, television set, etc.

5. It involves expenditure without any tangible return benefit.

6. It is tangible.
7. Physical possession is possible.
8. Physical possession is not possible.
9. It can be stored.
10. It cannot be transported.
11.The producer and the seller may be different
persons.
12. It cannot be stored.
13. It can be transported.
14. The producer is the seller too, e.g.,
medical and legal services.
15. Assembling is very important.
16. Assembling has no relevance at all.
17. Skill of the seller alone cannot determine sale.
18. Skill of the service provider is the deciding factor
in most cases, e.g., legal, catering, etc.
19. Production and distribution need not take place
simultaneously.
20. Production and distribution will have to
be done simultaneously, e.g.,
21. Packing plays a crucial role in its marketing.
22. Packaging has no relevance in the marketing.
23. Both Brand name and Trade name are important in
the marketing of any product .
24. Brand mark and Trade name are important in the
marketing of services.
25. Labeling is an integral part of marketing. It is
required as per law.
More exercises: skip
 Part II

DIRECTIONS: Read and analyze the statements below about

“Product or Service”. Determine whether the statement is TRUE
OR FALSE. Write TRUE if the statement is correct and write
FALSE if otherwise.

1. Products do not carry an element of service.

2. A service is the result of the application of skills and
expertise towards an identified need.
3. A service isn't something you can try out
before you pay for it.
4. All products are countable, touchable,
and visible, a consumer can assess its
durability by examining it.
5. Products are tangible and discernible items that the
organization produces.
6. Products and services can both be perishable.
7. Service is associated with physical items.
8. A product is an offering that derives value from
intangible elements.
9. A product may be capable of being reused for a certain
time.
10. Service has no connection with the sale of products.
 Lesson 4B
Identifying and Meeting Customer Needs
Customer needs are the named and
unnamed needs of customers when they come in
contact with the different business establishments or
when they search for the solutions which
businesses provide (https://www.conductor.com/).
In addition, providing superior customer service means
meeting customers’ needs by providing them with the
products and services they want or by providing effective
solutions to their problems (https://simplifytraining.com/).
Similarly, innovation comes from identifying customers’
needs and providing solutions that meet those needs.
 Why “Identifying Customer Needs” Matters
1.Correctly identifying customers’ needs is essential
for ensuring customer satisfaction and loyalty.
2. Customers have unique needs.
3. Often, customers either aren’t clear about what
they need or they don’t really know what they
want until you created a product fit for them.
4. Identifying clients’ needs creates satisfied
customers, and satisfied customers are less likely
to have reason to enter into disputes with the
organization or contemplate legal action.
 How to Meet the Needs of Customers
1.Identify what the customers need through
keyword research, focus groups, or social listening.
2. Distribute the information to relevant stakeholders
in the organization.
3. Craft product features that suit to the
customer’s needs.
4. Collect customer feedback in order to meet their
expectations.
Activity: See your group
Collecting Customers’ Feed back
Situation:
You are in a Batchoy business / in any Business, and
you want to improve your product. You wanted to
know what are suggestions from customers. How
would you collect feed back from them?
Frame some questions that you want to ask.
 LESSON 4C
VIABILITY, PROFITABILITY,
CUSTOMER REQUIREMENTS
 VIABILITY, PROFITABILITY AND
CUSTOMER REQUIREMENTS

The entrepreneurs desire to establish his business is a visible

idea yet it must come into a test whether it is viable business
option. It needs a careful analysis of opportunity evaluation.

Viability- having a reasonable chance of succeeding,

financially stable, capable of growing or developing.
The Entrepreneur should look deeper into the following areas based on
Viability:

1. Management must be able to set the direction of the

enterprise with a clear MISSION AND VISION as a guiding
tool for its plans and programs.

Mission and vision

2. The technical and manpower complements are important
factors in the success of the business.

The entrepreneur cannot do the task alone as he needs people

with the same outlook and perseverance as he has, especially
at the early stage of the business.
3. The management must introduce new technology to make
work easier for the working team.

Technology in the work place is motivating factor for the

employees to produce more products or better service.
 The Entrepreneur should look deeper into the following
areas based on Profitability:

Venturing into business needed financial resources.

Money is needed to finance the activities of business.
Whatever capital is available determines the kind of
business operation.
Profitability – yielding advantageous returns or results.
 Internal and External Sources of capital

The internal sources of capital will come from the savings and
assets of the starting entrepreneur.

Banks are external sources of funds. They are willing to help

businessmen with clear vision and good business ideas is backed
up by good feasibility studies.
Going to Viability & Profitability
CUSTOMER REQUIREMENTS

Customer requirements are the specific

characteristics that the customers need from a
product or a service.
There can be two types of customer requirements:

1. Service Requirement
2. Output Requirement
Service Requirement: Intangible thing or product that
cannot be touched but customer/s can feel the fulfilment.
There are elements in service requirement like on-time delivery,
service with a smile, easy-payment etc. It includes all aspects
of how a customer expect to be treated while purchasing a
product and how easy the buying process goes.
(e.g. in banking services-short lines, Online always, more ATMs,
comfortable venue, etc.)
Output Requirements: Tangible thing or things that can
be seen. Characteristic specifications that a consumer
expects to be fulfilled in the product. Costumer that will
avail services as a product, then various service
requirements can take the form of output requirements.
(product- quality shoes vs. price)
(Services-Good car washing output, beautiful make-up)
For example:
1. If the consumer hires a multi cab, then on-time
arrival becomes an service requirement.
2. If the customer buys gadgets e.g. phone speaker, the
specification like the loudness and clarity are the output
requirements.
Exercises:

Directions: Identify whether the following requirements are

SERVICE or OUTPUT
1.Cash deposit machines in banks
2.Shorter order time
3. Good haircut
4. Friendly staff
5. Crispy fried chicken
6.. Beautiful decorations in the wedding
7. well-ironed clothes
8. Delicious dish
9. Free massage for salon goers
10. Super straight hair
11. Provided Fitting rooms
12. Clear printing
13. Shuttle bus to the high way
14. Durable shoes
15. 100% board passers.
QUIZ :
Directions: Identify whether the following
requirements are SERVICE or OUTPUT
1. Providing shopping baskets to shoppers
2. Well-painted wall
3. Free delivery of goods
4. Accommodating waiters
5. Effective whitening soap
6. Warranty
7. Gcash payment
8. Clear water supply of Balibago
9. 100% recovered covid patients in PGH Hospital
10. Well constructed overpass
11. Durable laptop
12. Gun depository in malls
13. Provision of washing area
14. Delivery within the city
15. Beautiful landscaping
16. Provided a Senior Citizen lane
17. Classy bags
18. More tour guides
19. Drive through
20. softest burger in the city
ACTIVITY:

Criss Cross Puzzle. Read and analyze the

clues below and write the correct word on the
blocks across and down.
Across

2 - measures how well the expectations of a customer concerning a

product or service provided by a company have been met.
4 - taking possession of an asset by purchase.
7 - is a party that has an interest in a company and can either affect or
be affected by the business.
9 - the amount of something that people and other entities use.
10 - is information provided by clients about whether they are satisfied
or dissatisfied with a product or service.
Down
1- funds used by a business to attain new assets, improve
existing ones, or reduce a liability.
3 - unable to be touched or grasped; not having physical
presence.
5 - indicates the extent to which customers are devoted to a
company’s products or services.
6 - meeting the needs and desires of any customer.
8 - capable of being perceived especially by the sense of
touch
Activity: Cross Word Puzzle
Choices:

SATISFACTION CONSUMPTION
EXPENDITURES SERVICE
ACQUISITION FEEDBACK
INTANGIBLE TANGIBLE
STAKEHOLDERS
LOYALTY
ANSWER

DOWN ACROSS
1- Expenditures 2- Satisfaction
3- intangible 4-Acquisition
5- loyalty 7- Stakeholders
6- service 9-Consumption
8- tangible 10- feedback
PERFORMANCE TASK

As would-be entrepreneur, think of a product

to be sold and make a 10-item customer
product survey questionnaire. Focus on the
following guidelines:
1. Give a brief description about the
product.
2. Give directions as to how the customers
will answer the questionnaire. (check,
encircle, blacken, answer etc.)
3. The statement should be in a question form.
4. Provide options for each questions, if
necessary.
5. The questions should focus on:
a. Reaction about the product/service
b. Characteristics/features of the product/service
c. Product innovation
d. If the product/service will meet the customer’s
need
e. The price of the product/service
g. If they will recommend the product to their
friends
h. If they will replace their existing product once
your product is available in the market
i. The features/characteristics they like about the
product
j. Suggestions to improve the product/service
6. You may search online or you may adapt
survey questionnaire from books or other
available sources.