I.

Product Characteristics and Classifications

Product is anything that can be offered to a

market to satisfy a want or need, including
physical goods, services, experiences, events,
persons, places, properties, organizations,
information, and ideas.
 1. Product Levels: The Customer-Value
Hierarchy

• Product features and quality

• Services mix and quality
• Value-based prices
 Customer-value Hierarchy

• The fundamental level is the Core Benefit

The service or benefit the customer is really buying. A

hotel guest is buying rest and sleep. The purchaser of a
drill is buying holes. Marketers must see themselves as
benefit providers.
 Customer-value Hierarchy

• At the second level, the marketer must turn the core

benefit into a basic product.

Thus a hotel roomincludes a bed, bathroom, towels,

desk, dresser, and closet.
 Customer-value Hierarchy

• At the third level, the marketer prepares an expected

product

A set of attributes and conditions buyersnormally

expect when they purchase this product. Hotel guests
minimally expect a clean bed, fresh towels, working
lamps, and a relative degree of quiet.
 Customer-value Hierarchy
• At the fourth level, the marketer prepares an
augmented product that exceeds customer
expectations.

In developed countries, brand positioning and

competition take place at this level. In developing and
emerging markets such as India and Brazil, however,
competition takes place mostly at the expected product
level.
 Customer-value Hierarchy
• At the fifth level stands the potential product, which
encompasses all the possible augmentations and
transformations the product or offering might
undergo in the future.

Here companies search for new ways to satisfy

customers and distinguish their offering.
 2. Product Classifications

• Durability and Tangibility

• Consumer-Goods Classification
• Industrial-Goods Classification
 Durability and Tangibility

•Nondurable goods
•Durable goods
•Services
Nondurable goods
Durable goods
Services
 Consumer-Goods Classification

•Convenience Goods
•Shopping Goods
•Specialty Goods
•Unsought Goods
Convenience Goods
The consumer usually
purchases convenience
goods frequently,
immediately, and with
minimal effort.
Examples include soft
drinks, soaps, and
newspapers.
Shopping Goods
Shopping goods are those the consumer
characteristically compares on such bases as suitability,
quality,
price, and style.
 PAL-V
Specialty Goods introducing the
Pioneer Edition
at the Geneva
Ini Dia 9 Rekomendasi Barang Antik di Motor Show
Indonesia yang Layak untuk Diburu 2019, world’s
first production
model flying car.
The 90 pieces
limited edition
is based on the
PAL-V Liberty.

Specialty goods have unique characteristics or brand

identification for which enough buyers are willing to
make a special purchasing effort
Unsought goods
Unsought goods are those the consumer does not
know about or normally think of buying, such as
smoke
detectors.
 Industrial-Goods Classification
• Materials and parts are goods that enter the
manufacturer’s product completely.

• Capital items are long-lasting goods that facilitate

developing or managing the finished product.

• Supplies and business services are short-term goods

and services that facilitate developing or managing
the finished product
II. Differentiation
 1. Product Differentiation
• Form
• Features
• Performance Quality
• Conformance Quality
• Durability
• Reliability
• Repairability
• Style
• Customization
 2. Services Differentiation

• Ordering Ease
• Delivery
• Installation
• Customer Training
• Customer Consulting
• Maintenance and Repair
• Returns
What tactic can you inform to
your consumer about your new
product?
III. Design
 Grab attention

Nothing's More Valuable Than

Attention
Gary Vaynerchuk
The Keys to Get Consumer’s Attention in 2019

• Know Your Customers Better

• Partner with Like-Minded Businesses
• Strengthen Your Brand Impression
• Share Relevant Content
• Get More Involved Within Your Community

Gary Vaynerchuk
https://www.youtube.com/watch?v=b54bP5Nmz1c)
(
Design Leaders
Design Leaders
Design is more
than a logo.
Design is a
strategy made
visible
Power of Design
Approaches to Design
Approaches to Design
IV. Luxury Products
 Characterizing Luxury Brands

Sub-Zero refrigerators
 Characterizing Luxury Brands

Patrón tequila
 Characterizing Luxury Brands

Montblanc luxury goods

Growing Luxury Brands & Marketing Luxury
Brands
Growing Luxury Brands
People Pleasure

Product Purpose

Passion Price
1. Provide Assistance Before Customers Ask for It
2. Offer Hyper-Personalized Content
3. Provide an Integrated Shopping Experience
4. Make Customers Fall in Love at First Sight
5. Optimize Your Customer Lifecycle

Don’t give cheap discounts.

Design a hierarchical point system

Reward customers through enhanced experiences,

6. Stay Engaged Post-Purchase
7. Understand What Your Clientele Really
Wants
V. Environmental Issues
VI. Product and Brand Relationships
The Product Hierarchy
Product Systems and Mixes
 Product Line Analysis

• Sales and Profits

 Product Line Analysis
• Market Profile and Image
 Product Line Length
• Line Stretching

Down-Market Stretch
Up-Market Stretch
Two-Way Stretch

• Line Filling
Down Market product line stretching
Up Market Product line stretching
Two-way Product line stretching
Line Modernization, Featuring, and Pruning
Nike and Jordan Brand’s 2019 NBA
All-Star Collection
How Intel evolved from an invisible
'ingredient brand' to win over more
millennials?
“Marketing your selves as an
ingredient brand means that
you're invisible”
Using technology to enable experiences
&
Finding the right face for the product
VII. Packaging, Labelling, Warranties,
and Guarantees
Packaging
 Packaging

• Self-service
• Consumer affluence
• Company and brand image
• Innovation opportunity
 Formally, packaging must achieve a number of
objectives

• Identify the brand

• Convey descriptive and persuasive information
• Facilitate product transportation and
protection
• Assist at-home storage
• Aid product consumption
Labelling
Warranties and Guarantees