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Before We Start…
It is assumed that after going through the earlier session
you are now able to:

 Basics of marketing
 Explain different terms of marketing
 Apply marketing mix into associative concepts

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Session 22

Marketing Management I

 Topic to be covered in this session:

 Generic Product

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Session Learning Objectives…

At the end of this session you should be able to:

 Explain Generic products

 Understand the concept of Product marketing versus
service marketing
 Understand Product levels & types & Product hierarchy
 Types of business and consumer products

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Basics
 Product is anything….. To be offered to market to satisfy
need/ want….
 At the heart of a great brand is a great product which
should offer superior quality of unsurpassed customer
value
 Provides functional requirements that serves the need of
the consumer
 Products should focus on being developed, produced
and made available in the best possible way
 Brands differentiate one product from the other.

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Product marketing versus services marketing

 The entire process, right from the market analysis, to

delivering product to the customer and receiving
feedback, is called product marketing
 When a person or business entity promotes services it
offers to its customers or clients, it is known as service
marketing.
 In a product marketing, only 4 P’s of the marketing mix
are applicable which are product, price, place and
promotion, but in the case of service marketing, three
more P’s are added to the conventional marketing mix,
which are people, process and physical existence

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Product marketing versus services marketing

 When a product is marketed, the company offers value,

as it fulfils customer’s requirements. Conversely, when
service is marketed by a company, it offers a relationship
to its clients
 In product marketing, the company promotes something
whose ownership can be transferred/resold to another
party. But in the case of service marketing, the company
promotes something, whose ownership can neither be
transferred nor it is resold to the other party

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Product marketing versus services marketing

 In product marketing, products reach the buyers, as they
can be transported from one place to another through
various distribution channels. Unlike service marketing,
where customers come to the services or the service
provider visit customer because services cannot be
transported, they are location based

 Products are tangible in nature, they can be felt and

touched, which make its promotion easier. On the other
hand, services are intangible, people can only experience
it, and so marketing of services is a bit difficult

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Product marketing versus services marketing

 If the quality of a certain product is not up to the mark,
or it does not fulfil the desired requirement, it can be
returned to the seller. However, it is impossible in the
case of services, because once the services are delivered,
they cannot be taken back. So, the marketing of services,
should be done keeping the returnability factor in mind

 In product marketing, the product can be separated from

its producer, and so they are durable and can be
inventoried. On the contrary, in service marketing,
services can not be separated from its source, i.e. service
provider. Hence the production and consumption of
services are simultaneous; they are perishable

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Product marketing versus services marketing

 Product offered by a company under a particular
segment are standardised; they cannot be changed or
altered as per customer’s requirement. In contrast,
services offered by a company are highly variable and
can be easily customised as per the requirements.

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Product levels
 Core benefits: service or benefit customer is really
buying (hotel for rest and sleep)
 Basic product: the actual thing that customer is buying
(hotel room includes bed/ towel)
 Expected product: set of attribute and conditions buyers
normally expect when they purchase a product (clean
room, clean bedsheets) – competition for developing
countries
 Augmented product: exceeds customers expectations (a
bathtub with scented petals) - competition for
developing countries/ this stage moves to the previous
after a point

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Product levels
 Potential product: encompasses all the possible
augmentation and transformation the product might
undergo in the future. Finding new ways to satisfy
consumers.

Think if you had to categorise GBS in all these 5 levels, what

would it be?

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Product types

 Business (used for manufacturing other goods,

facilitating organization’s operations, resell to other
customers, B-2-B)
 Consumer (personal wants, B-2-C)
 Main difference is its purpose/ intended use/ different
target market/ different distribution/ promotion /
pricing

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Types of business products

 Materials and parts (raw materials & manufactured
materials and parts): goods that enter the manufacturer’s
product completely

 Capital items (installations & equipment): long-lasting

goods that facilitate developing or managing the
finished products

 Supplies and business services (maintenance and repair

systems, operating supplies): short term goods and
services that facilitate developing or managing a
finished product.

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Types of consumer products

 Convenience product: inexpensive products, little
shopping efforts without much planning, almost
decided brands, FMCG – toothpaste, chocolates

 Shopping product: more expensive than consumer

products, bought after comparing several brands,
although in this category, television, refrigerator,
clothing & furniture fall in the same category, television
& refrigerator (objective criteria) versus clothing &
furniture (subjective criteria) are actually different,
Durable goods

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Types of consumer products

 Specialty product: strong brand preference and very
fussy, go a distance to find the specific brand/ brand
names very important, designer watches, Rolls Royce,
restaurants

 Unsought products: unknown to the potential customer

or they do not actively seek, new products in the
category, customer neither seek them or think about
them nor want to spend money on them, insurance,
credit cards

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Product hierarchy
 Need family: the core need that underlies the existence
of a product family (Insurance – security)

 Product family: All product classes/ category that

satisfy a core need with reasonable effectiveness
(insurance- savings and income)

 Product class / category: Group of products within a

product family having functional coherence (financial
instrument)

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Product hierarchy
 Product line: Group of products within a product class
that are closely related because they perform similar
function, sold to same consumer group, through same
outlet and given price range. (life insurance)

 Product type: a group of items within a product that

share one of several possible form of the product. (term
life insurance)

 Product items: (stock keeping units/ product variants): a

distinct unit within a brand or product line
distinguishable by size, price and other attributes
(prudential renewable term life insurance)

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Before We End…
It is assumed that after going through the current session
you are now able to:

 Explain Generic products

 Understand the concept of Product marketing versus
service marketing
 Understand Product levels & types & Product hierarchy
 Types of business and consumer products

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Crib Sheet
Product marketing: Product levels:
The entire process, right from the 1. Core
market analysis, to delivering 2. Basic
product to the customer and 3. Expected
receiving feedback. 4. Augmented
5. Potential

Product Hierarchy:
1. Need family
Service Marketing:
2. Product family
When a person or business entity
3. Product class / category
promotes services it offers to its
4. Product line
customers or clients.
5. Product type
6. Product items

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Crib Sheet

Types of Business products: Types of Consumer products:

1. Materials and parts 1. Convenience product

2. Capital items 2. Shopping product
3. Supplies and business services 3. Specialty product
4. Unsought products

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THANK YOU…

All information, including graphical representations, etc provided in this presentation is for exclusive use of current GBS
students and faculty. No part of the document may be reproduced in any form or by any means, electronic or otherwise, without
written permission of the owner.

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