LEVELS OF PRODUCT

Kotler in his book MARKETING MANAGEMENT states that in planning its

market offering, the marketer needs to think through five levels of the product.
Each level adds more customer value and the five levels constitute a customer
value hierarchy
1. Core Product
This is the basic product and the focus is on the purpose for which the product is
intended. For example, a warm coat will protect you from the cold and the rain.
2. Generic Product
This represents all the qualities of the product. For a warm coat this is about fit,
material, rain repellent ability, high-quality fasteners, etc.
3. Expected Product
This is about all aspects the consumer expects to get when they purchase a product.
That coat should be really warm and protect from the weather and the wind and be
comfortable when riding a bicycle.
4. Augmented Product
This refers to all additional factors which sets the product apart from that of the
competition. And this particularly involves brand identity and image. Is that warm
coat in style, its colour trendy and made by a well-known fashion brand? But also
factors like service, warranty and good value for money play a major role in this.

5. Potential Product
This is about augmentations and transformations that the product may undergo in
the future. For example, a warm coat that is made of a fabric that is as thin as paper
and therefore light as a feather that allows rain to automatically slide down.

INTRODUCTION
WHAT IS A PRODUCT?
In general, a product is defined as a "thing produced by labor or effort" or the
"result of an act or a process."The word "product" stems from the verb "produce",
from the Latin prdce(re) "(to) lead or bring forth." Since 1575, the word
"product" has referred to anything produced.
In marketing, a product is anything that can be offered to a market that might
satisfy a want or need. In retail, products are called merchandise. In manufacturing,
products are purchased as raw materials and sold as finished goods. Commodities
are usually raw materials such as metals and agricultural products, but the term can
also refer to anything widely available in the open market. In project management,
products are the formal definition of the project deliverables that form the
objectives of the project.
A product can be classified as tangible or intangible. A tangible product is a
physical object that can be perceived by touch such as a building, vehicle, gadget,
or clothing. An intangible product is a product that can only be perceived indirectly
such as an insurance policy.
A good, idea, method, information, object or service created as a result of a process
and serves a need or satisfies a want. It has a combination of tangible and
intangible attributes (benefits, features, functions, uses) that a seller offers a buyer
for purchase. For example a seller of a toothbrush not only offers the physical
product but also the idea that the consumer will be improving the health of their
teeth.

DEFINITION
Philip Kotler: A product is anything that can be offered to a market for
attention, acquisition, user or consumption that might satisfy a want or a
need.
William Stanton: A product is a set of tangible attributes including
packaging, colour, price, quality and brand plus the services and reputation
of the seller. A product may be good, service, place, person or idea.
Skinner: A product is any good, service or idea that satisfies a need or a
wants and can be offered in an exchange.

PRODUCT MIX
Product mix, also known as product assortment, refers to the total number of
product lines that a company offers to its customers. For example, a small
company may sell multiple lines of products. Sometimes, these product lines are
fairly similar, such as dish washing liquid and bar soap, which are used for
cleaning and use similar technologies. Other times, the product lines are vastly

different, such as diapers and razors. The four dimensions to a company's product
mix include width, length, depth and consistency.
Width
The width of a company's product mix pertains to the number of product lines that
a company sells. For example, if a company has two product lines, its product mix
width is two. Small and upstart businesses will usually not have a wide product
mix. It is more practical to start with some basic products and build market share.
Later on, a company's technology may allow the company to diversify into other
industries and build the width of the product mix.
Length
Product mix length pertains to the number of total products or items in a company's
product mix, according to Philip Kotler's textbook "Marketing Management:
Analysis, Planning, Implementation and Control." For example, ABC company
may have two product lines, and five brands within each product line. Thus, ABC's
product mix length would be 10. Companies that have multiple product lines will
sometimes keep track of their average length per product line. In the above case,
the average length of an ABC Company's product line is five.

Depth
Depth of a product mix pertains to the total number of variations for each product.
Variations can include size, flavor and any other distinguishing characteristic. For
example, if a company sells three sizes and two flavors of toothpaste, that
particular brand of toothpaste has a depth of six. Just like length, companies

sometimes report the average depth of their product lines; or the depth of a specific
product line.
Consistency
Product mix consistency pertains to how closely related product lines are to one
another--in terms of use, production and distribution. A company's product mix
may be consistent in distribution but vastly different in use. For example, a small
company may sell its health bars and health magazine in retail stores. However,
one product is edible and the other is not. The production consistency of these
products would vary as well.
Product Market Mix Strategy
Small companies usually start out with a product mix limited in
width, depth and length; and have a high level of consistency.
However, over time, the company may want to differentiate
products or acquire new ones to enter new markets. A company
can also sell the existing products to new markets by coming up
with new uses for their product.