• A product is anything that can be offered to a market to satisfy a need or want.

Or
• A product is anything which has the capability to satisfy the needs and wants of the customers or end users.

Customer Value Hierarchy .

high competitive differentials. emergence of differentials and low level of competition.  Level IV: Augmented Product – Delivering more than what customer expects. The benefit that customer is really buying. Little or no competition.  Level II: Basic Product – Includes basic necessities.  Level III: Expected Product – Includes a set of attributes that marketers normally expect. very high level of competition. .Product Levels  Level I: Core benefit – Fundamental level. possessing a edge in the market  Level V: Potential Product – Ascertaining future needs and including all possible augmentations for satisfying and retaining customers.

– Durable Goods: Tangible. shorter shelf life. service. – Services: Intangible. Personal selling. bought occasionally. Quality control. Availability. induce trial. higher margin. Inseparable. bought frequently. longer shelf life. supplier credibility. low margins. variable. heavy advertisement.Product Classifications  Durability and Tangibility – Non-durable goods: Tangible. guarantees. perishable. .

immediately. – Unsought Goods (no awareness): Need advertising to spread awareness.Product Classifications  Consumer Goods – Convenience Goods (frequently. Emergency goods – Shopping Goods (Effects comparison. Heterogeneous – Specialty Goods: Brand identities. minimum effort): Staples. Impulse. lengthy decision making process): Homogeneous. usually high-priced / need-based goods. .

– Capital Items  Installation – Buildings.Product Classifications  Industrial Goods – Materials and Parts  Raw Material – Farm products. Office Equipment – Supplies and Business Services  Maintenance and Repair  Operating Supplies  Intelligence and Consulting Services . Natural Products  Manufactured Material: Component materials. Component parts. Heavy equipment  Equipment – Factory Equipment.

Considering the value propositions Performance Quality: Level at which the product’s primary characteristics operate. Conformance Quality: In order to conform with the Standard specifications Durability: Expected operating life / shelf life Reliability: Non-probability of functional risks Repairability: Re-Fixability during malfunction Style: Look N Feel of the product.Product Differentiation         Form: Size. . shape or physical structure Features: Supplementing the basic function.

 Product Consistency: The relationship between the products in terms of production and channel lines and end users.  Product Depth: The many variants offered in each product line.  . or the total number of lines Product mixes)  Product Length: Total number of items in the mix (The sum of lengths of all lines).Product Mix / Assortment Product Width: The many different product lines the company carries.

new product (just noticeable difference)  Line Modernization. featuring and pruning .Line-Length Strategies  Line Stretching – Down-market Stretching – Up-Market Stretching – Two-way Stretching  Line Filling: New segment.