Unit – I

Product Levels, Hierarchy
Arun Mishra
Asst. Professor
VNS Business School
arunjimishra@gmail.com
9893686820
Five Product Levels
core benefit of the product
generic product
expected product
augmented product
potential product
source: Kotler, marketing management
Five product levels described
Product Levels Description
Core benefits
the fundamental need or want that consumers
satisfy by consuming the product or service.
Basic product
a version of the product containing only those
attributes or characteristics absolutely necessary
for it to function.
Expected product
the set of attributes or characteristics that buyers
normally expect and agree to when they
purchase a product.
Augmented product
inclusion of additional features, benefits,
attributes or related services that serve to
differentiate the product from its competitors.
Potential product
all the augmentations and transformations a
product might undergo in the future.
12-4
Product Classification Schemes
Durability
Use
Tangibility
12-5
Durability and Tangibility
Nondurable
goods
Services
Durable
goods
Homogeneous
Shopping Products
Heterogeneous
Shopping Products
Shopping Products
Homogeneous
Shopping Products
Heterogeneous
Shopping Products
Shopping Products
Specialty Products
Convenience Products Impulse Products
Emergency Products
Staples
New Unsought
Products
Regular Unsought
Products
Unsought Products
Convenience Products Impulse Products
Emergency Products
Specialty Products
Staples
Consumer Goods Classification
Industrial Goods Classification
MRO Supplies
MRO Supplies
Supplies for
Maintenance, Repair,
and Operating
Component
Parts &
Materials
Component
Parts &
Materials
processed expense
items that become part
of a finished product
Raw
Materials
Raw
Materials
unprocessed expense
items that become a
physical part of a
physical good
Accessories
Accessories
short-lived capital
items—tools &
production equipment
Installations
Installations
important
capital items
Professional
Services
specialized services to
support a firm’s
operations--consulting
services
Business
Product
Classes
The Product Hierarchy
• Need Family: The core need that underlies the existence of a
product family.
• Product family: All the product classes that can satisfy a core
need with a reasonable effectiveness.
• Product class: A group of product within a product family
recognised as having a certain functional coherence.
• Product line: A group of product within a product class that are
closely related as they perform similar function, sold to same customer
group, market through same channels, fall within given price range.
• Product type: A group of items within a product line with one or
several forms of the product.
• Item: (Product Variant) – a distinct unit within a brand or product line,
distinguished by size, price etc.
Service Mapping/Blueprinting
• A tool for simultaneously depicting the
service process, the points of customer
contact, and the evidence of service from
the customer’s point of view.

Service
Mapping
Process
Points of Contact
Evidence
Blueprinting
• Looks at the basic systems of your
organization ---- ―a process‖
• Answers the questions: Who does what,
to whom, how often, and under what
conditions?

Service Blueprint Components
CUSTOMER ACTIONS
line of interaction
“ONSTAGE” CONTACT EMPLOYEE ACTIONS
line of visibility
“BACKSTAGE” CONTACT EMPLOYEE ACTIONS
line of internal interaction
SUPPORT PROCESSES
Symbols Used In Blueprinting
• Rectangles --- process symbol
• Flow of lines --- how often
• Boxes with fans --- a range of potential
actions which can occur
• Circles with fans --- a range of potential
events that may occur
• Line of Visibility --- onstage from
backstage
Building a Service Blueprint
Step 1

Identify
the
process
to be
blue-
printed.
Step 2

Identify
the
customer
or
customer
segment.
Step 3

Map the
process
from the
customer
’s point
of view.
Step 4

Map
contact
employee
actions,
onstage
and
back-
stage.
Step 5

Link
customer
and
contact
person
activities
to needed
support
functions.
Step 6

Add
evidence
of
service at
each
customer
action
step.
A Model Service Blueprint of a Bank
Cash
Receipts
Cash
Payments 1
DDs & other
Services
Cheques/
withdrawal from
receiving
counter
Cash Manager
Bills Verification
Officers
Bills Passing
Officers
Accountant / Supervising
Officers
Accounts
Department
Chief Manager/
Branch Manager
Support
Staff
Deposits /
Loans
Customer
Contact
Points
Support
Services
Line of Visibility
Backstage
Support
Services
Application of Service Blueprints
• New Service Development
• concept development
• market testing
• Supporting a ―Zero Defects‖ Culture
• managing reliability
• identifying empowerment issues
• Service Recovery Strategies
• identifying service problems
• conducting root cause analysis
• modifying processes

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