Download - Basics of Product.ppt
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8/14/2019 Basics of Product.ppt
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A product is anything that can be offered to a market
to satisfy a need or want.
Or
A product is anything which has the capability to satisfythe needs and wants of the customers or end users.
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Customer Value Hierarchy
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Product Levels
Level I: Core benefit Fundamental level, Little or no competition, The benefit
that customer is really buying.
Level II: Basic Product Includes basic necessities, emergence of differentials
and low level of competition. Level III: Expected Product
Includes a set of attributes that marketers normallyexpect, high competitive differentials.
Level IV: Augmented Product Delivering more than what customer expects, very high
level of competition, possessing a edge in the market
Level V: Potential Product Ascertaining future needs and including all possible
augmentations for satisfying and retaining customers.
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Product Classifications
Durability and Tangibility Non-durable goods: Tangible, bought
frequently, shorter shelf life. Availability, lowmargins, heavy advertisement, induce trial.
Durable Goods: Tangible, bought occasionally,longer shelf life. Personal selling, service,higher margin, guarantees.
Services: Intangible, Inseparable, variable,
perishable. Quality control, supplier credibility.
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Product Classifications
Consumer Goods
Convenience Goods (frequently, immediately,minimum effort): Staples, Impulse, Emergency
goods Shopping Goods (Effects comparison, lengthy
decision making process): Homogeneous,Heterogeneous
Specialty Goods: Brand identities, usuallyhigh-priced / need-based goods.
Unsought Goods (no awareness): Needadvertising to spread awareness.
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Product Classifications
Industrial Goods Materials and Parts
Raw Material Farm products, Natural Products
Manufactured Material: Component materials,
Component parts. Capital Items
Installation Buildings, Heavy equipment
Equipment Factory Equipment, Office Equipment
Supplies and Business ServicesMaintenance and Repair
Operating Supplies
Intelligence and Consulting Services
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Product Differentiation
Form: Size, shape or physical structure
Features: Supplementing the basic function.Considering the value propositions
Performance Quality: Level at which the products
primary characteristics operate. Conformance Quality: In order to conform with
the Standard specifications
Durability: Expected operating life / shelf life
Reliability: Non-probability of functional risks Repairability: Re-Fixability during malfunction
Style: Look N Feel of the product.
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Product Mix / Assortment
Product Width: The many differentproduct lines the company carries, or thetotal number of lines Product mixes)
Product Length: Total number of items in
the mix (The sum of lengths of all lines). Product Depth: The many variants offered
in each product line. Product Consistency: The relationship
between the products in terms ofproduction and channel lines and endusers.
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Line-Length Strategies
Line Stretching
Down-market Stretching
Up-Market Stretching
Two-way Stretching
Line Filling: New segment, newproduct (just noticeable difference)
Line Modernization, featuring andpruning