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Basics of Product.ppt

Basics of Product.ppt

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Published by Arnold Nitin
PLC
PLC

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Published by: Arnold Nitin on Nov 11, 2013
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11/11/2013

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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 satisfy the needs and wants of the customers or end users.

Customer Value Hierarchy .

high competitive differentials.Product Levels  Level I: Core benefit – Fundamental level.  Level II: Basic Product – Includes basic necessities.  Level III: Expected Product – Includes a set of attributes that marketers normally expect. possessing a edge in the market  Level V: Potential Product – Ascertaining future needs and including all possible augmentations for satisfying and retaining customers. very high level of competition.  Level IV: Augmented Product – Delivering more than what customer expects. Little or no competition. . emergence of differentials and low level of competition. The benefit that customer is really buying.

Product Classifications  Durability and Tangibility – Non-durable goods: Tangible. bought occasionally. bought frequently. Personal selling. – Services: Intangible. . variable. low margins. guarantees. – Durable Goods: Tangible. shorter shelf life. supplier credibility. Quality control. higher margin. Availability. service. perishable. induce trial. Inseparable. longer shelf life. heavy advertisement.

Impulse. Heterogeneous – Specialty Goods: Brand identities. immediately. usually high-priced / need-based goods. Emergency goods – Shopping Goods (Effects comparison. . – Unsought Goods (no awareness): Need advertising to spread awareness. minimum effort): Staples.Product Classifications  Consumer Goods – Convenience Goods (frequently. lengthy decision making process): Homogeneous.

Product Classifications  Industrial Goods – Materials and Parts  Raw Material – Farm products. Component parts. Natural Products  Manufactured Material: Component materials. Heavy equipment  Equipment – Factory Equipment. – Capital Items  Installation – Buildings. Office Equipment – Supplies and Business Services  Maintenance and Repair  Operating Supplies  Intelligence and Consulting Services .

Product Differentiation         Form: Size. shape or physical structure Features: Supplementing the basic function. . 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. Considering the value propositions Performance Quality: Level at which the product’s primary characteristics operate.

or the total number of lines Product mixes)  Product Length: Total number of items in the mix (The sum of lengths of all lines).Product Mix / Assortment Product Width: The many different product lines the company carries.  Product Depth: The many variants offered in each product line.  .  Product Consistency: The relationship between the products in terms of production and channel lines and end users.

new product (just noticeable difference)  Line Modernization.Line-Length Strategies  Line Stretching – Down-market Stretching – Up-Market Stretching – Two-way Stretching  Line Filling: New segment. featuring and pruning .

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