PRODUCT MANAGEMENT EXPECTED PRODUCT: A set of attributes and
‘The vision is to bring a Filipino product to conditions buyers normally expect when they
international recognition.’
-RICHARD V. SANZ
AGE STARTED: 24
INDUSTRY: FOOD
INITIAL CAPITAL: P100,000
NAME OF BUSINESS: FOOD ASIA CORP.
YEAR ESTABLISHED: 2004
VALUE PROPOSITION
- A value proposition refers to the value a
company promises to deliver to customers
should they choose to buy their product.   TYPES OF PRODUCTS
WHAT IS PRODUCT?
 Anything that can be offered to a market for
attention, acquisition, use or consumption that
might satisfy a want or need. (KOTLER)
 More than just tangible objects includes
services, events, persons, places, organizations,
ideas, or a mixture of these. (GO)
 They are the key elements of market offering.
(GO)
LEVELS OF PRODUCT
1. Core Benefit
The core benefit of Coca-Cola is to quench a thirst.
2. Generic Product
The generic product is a burnt vanilla smelling,
black, carbonated, and sweetened fizzy drink.
3. Expected Product
The expected product is that the customer’s Coca-
Cola is cold. If this isn’t the case then expectations
won’t be met and the drink will not taste its best in
the mind of the customer.
4. Augmented Product
Coca-Cola’s augmented product is that it offers
Diet-Coke. How does Coca-Cola exceed customers
expectations with this product? By offering all the
great taste of Coca-Cola, but with zero calories.
5. Potential Product
One way in which Coca-Cola delights customers is
by running competitions. The prizes in these
competitions are often things that, “money can’t
buy”, such as celebrity experiences. To continue to
delight customers over time the competition prizes
change frequently.
CORE BENEFIT: The fundamental level. It is
the service or benefit the customer is really buying.
BASIC PRODUCT (GENERIC): What
specifically the actual product is.
purchase a product.
AUGMENTED PRODUCT: A product that
includes features that go beyond consumer
expectations and differentiate the product from
competitors.
POTENTIAL PRODUCT: All the impossible
augmentations and transformations the product or
offering might undergo in the future.
DURABLES
- Products which have a long interval
between repeat purchases because of their
long-lasting nature.
NON-DURABLES
- Products which have stronger repeat
purchases because they are consumable.
SERVICES
- Products which are essentially intangible
because there are no physical items
involved.
CLASSIFICATIONS OF PRODUCTS
 CONSUMER PRODUCT is a product bought by final
consumers for personal consumption.
 INDUSTRIAL PRODUCT is a product bought by
individuals and organizations for further processing
or for use in conducting a business.
TYPES OF CONSUMER PRODUCTS
CONVENIENCE PRODUCT
 A consumer product that customers usually buy
frequently, immediately, and with minimal
comparison and buying effort.
1) STAPLE GOODS such as rice, sugar & other
commodities
2) IMPULSE GOODS such as candies and snack
foods.
3) EMERGENCY GOODS such as umbrellas and
batteries.
 No buyer loyalty involved.
 Prices of different brands are mostly at par.
 Minimal effort in making purchase.
 They become shopping goods when sold in bulk.
SHOPPING PRODUCT
 A consumer product that the customer, in the
process of selecting and purchasing, usually
compares on such attributes as suitability, quality,
price, and style.
• Consumers makes product comparison.
• They seek information before purchase and
not impulsive.
• Moderate substitutions are made.
• Products last for a considerable time.
• Monetary and social cost may be high.
SPECIALTY PRODUCT
 A consumer product with unique characteristics or
brand identification for which a significant group of
buyers is willing to make a special purchase effort.
 They have their own niches.
 Oftentimes do not have substitutes
UNSOUGHT PRODUCT
 A consumer product that the consumer either does
not know about or knows about but does not
normally consider buying
TYPES OF INDUSTRIAL PRODUCTS
MATERIALS AND PARTS
RAW MATERIALS
 Farm products – Farm products are
products which can be re produced or
recycled easily. They are present in ample
amount. However, due to their nature, they
are perishable and have to be handled
accordingly. But because they are
commonly used, there is hardly any
marketing applied to them. Some common
products include cheese, eggs, fruits and
vegetables, cotton, wheat etc.
 Natural products – Natural products are
products occurring naturally in the earth
and hence they cannot be recycled or re
produced. Petrol or Diesel or oil (commonly
used) are products which occur naturally
and can be classified as an
Industrial product. These products are
found in bulk and the rarer they are, the
higher the value. Price is totally dependent
on reliability of supply and keeps changing.
Government intervention for these products
is high too.
MANUFACTURED MATERIALS AND PARTS
a) Manufactured Materials – Any process which
requires raw material to be processed to give final
products is a part of manufactured materials
classification. The pricing and marketing of the
product in this case depends on the raw material
being used. So if the yarn which is used to make
the cloth is very high quality, the pricing of the end
product will be high and the marketing will also be
premium marketing.
b) Manufactured Parts – If we are making smaller
units which play their role in larger products, then
we are manufacturing parts as an industrial
product. Ball bearings are the perfect example of
Manufactured parts. Now, there are so many ball
bearings manufacturers out there, that their
marketing has become tedious as there is no or
very less differentiation possible. Hence, pricing
and availability of manufactured parts becomes a
major issue instead of advertising, branding or
marketing.
CAPITAL ITEMS
 INSTALLATION
Installations – Large installations such as factories,
warehouses and other buildings are capital items
which require long time installation and are used for
an even longer time. There are very few people in
between when an installation is bought by a
company. Design is critical to such installations and
there is absolute absence of Marketing in
installations. 
 EQUIPMENTS
 Equipments – Equipments are both – heavy
machineries as well as a utility to the organization
using them. Equipments in case of factories will be
caterpillars, trucks, cranes and what not.
Equipment in case of industrial services will be
computers, hardware and design equipment,
printers, copiers etc. These equipments are sold
mainly through intermediaries, though larger the
equipment, more is the involvement of the brand
directly. In the sale of equipments, personal selling
plays a major role as compared to marketing and
advertising.
SUPPLIERS AND BUSINESS SERVICE
MAINTENANCE AND REPAIR ITEMS & OPERATING
SUPPLIES
MRO (maintenance, repair, and operating
supply) items are supplies utilized in the
production process, that is not ultimately seen in
the end products themselves. MRO items may
include gloves, safety equipment, computers,
industrial equipment (valves, compressors, pumps),
consumables (cleaning, laboratory, and office
supplies) and plant upkeep supplies (lubricants,
gaskets, repair tools).