SETTING

PRODUCT
STRTAEGY
Chapter 8
At the heart
of a great
BRAND
is a great
PRODUCT.
2
Five Product Levels
▸ Core benefit
▹ The service or benefit the customer is really buying
▸ Basic product
▹ Core benefit that turns into basic product
▸ Expected Product
▹ a set of attributes and conditions buyers normally expect when they purchase this
product.
▸ Augmented Product
▹ Exceeds customer expectations
▸ Potential Product
▹ Offering that might undergo in the future
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Product
Classification:
Durability, Tangibility, Use
Durability and Tangibility
▸ Non-durable ▸ Durable goods ▸ Services
goods Tangible goods Intangible,
Tangible goods that normally inseparable,
normally survive many uses variable &
consumed in one perishable
or a few uses products

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 Uses: Consumer Goods
▸ Convenience ▸ Shopping ▸ Specialty ▸ Unsought
Purchase Consumer Have unique Consumer doesn't
frequently, compares on such characteristics & know about or does
immediately & with bases suitability, need special not normally think
minimum of efforts quality, price & purchasing efforts of buying.
style

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Uses: Industrial Goods
▸ Materials and ▸ Capital items ▸ Supplies/busines
parts Component Materials services
Raw materials e.g. Iron, Yarn, Maintenance & repair
Manufactured Cement, Wires etc. items
Materials Component Parts e.g. Operating Supplies
Small motors, Tires,
etc.

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Product Differentiation
1 2 3 4

Product Form Customization Performance Conformance

Size, shape & physical Making product as per Level at which the Degree to which all the
structure the requirements of an product's primary produced units are
individual. characteristics identical & meet the
operate. promised
specifications.

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Product Differentiation
5 6 7 8

Durability Reliability Repairability Style

A measure of the The probability that The ease of fixing a Describes the
product’s expected a product will not product when it product’s look &
operating life under malfunction or fail malfunctions or feel to the buyer.
natural or stressful within a specified
fails.
conditions. time period.

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 Differentiation

Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance and repair
Returns
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Product
System
A group of diverse but
related items that
function in a compatible
manner.
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Product Mix
Also called a product
assortment, is the set of all
products and items a particular
seller offers for sale.

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Product Mixes:
1. Width - Refers to how many different product lines the
company carries.
2. Length - Refers to the total number of items in the product
mix.
3. Depth - Refers to how many variants are offered of each
product in the line.
4. Consistency - Refers to how closely related the various
product lines are in end use.
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Procter & Gamble:

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15
Formative
Assessment #1:

Make a research about

the company’s product
width, length, and depth.

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Formative
Assessment #2:

Give three (3) examples of

a goods or services with
its five product levels.

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