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<rabhgeet kaur
Mr. S.K Chaddha
<riya Tiku
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<riyanka Gunani

MBA -B

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^c A product may be a good, service, place, person, or idea.

^c A product is a set of tangible and intangible attributes, which include packaging, color,
price, quality, and brand, plus the services and reputation of the seller.

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CT CHA ACTE STCS AN CLASSCAT
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<roduct levels: Customer-Value Hierarchy

n planning its market offering, marketers need to address 5 product levels. Each level adds more
customer value, and the five constitute a customer value hierarchy.

1.c Jc -the fundamental need or want that consumers satisfy by consuming the
product or service.

2.c ¦ c  -a version of the product containing only those attributes or
characteristics absolutely necessary for it to function.

3.c [
 c -the set of attributes or characteristics that buyers normally expect and
agree to when they purchase a product.

4.c Ô c  -inclusion of additional features, benefits, attributes or related

services that serve to differentiate the product from its competitors.

å c alc -all the augmentations and transformations a product might undergo in

the future.c
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Kotler noted that much competition takes place at the Augmented <roduct level rather than at the
Core Benefit level or, as Levitt put it: 'New competition is not between what companies produce
in their factories, but between what they add to their factory output in the form of packaging,
services, advertising, customer advice, financing, delivery arrangements, warehousing, and other
things that people value.'
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Marketers have traditionally classified products on the basis of urability, Tangibility and se
(Consumer or ndustrial).Each product has an appropriate marketing mix strategy.

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1.c  a
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: are tangible goods consumed in one or few uses like coke and soap,
because these goods are consumed quickly and purchased frequently, the best strategy is
to make them available in many locations, charge only a small mark-up and advertise
heavily to induce trail and build preference.

2.c  a
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 they are tangible goods that normally survive many uses: refrigerator,
machine tools and clothing. urable goods normally require more personal selling and
service, command a high margin and require more seller guarantees.

3.c ~ 
 they are intangible, inseparable, variable and perishable products. As a result
they normally require more quality control, supplier credibility and adaptability, like
haircuts, legal advice and appliance repairs.

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The vast array of goods consumers buy can be classified on the basis of shopping habits.

1.c J c 

: consumer usually purchases frequently, immediately and with a
minimum of effort like tobacco products, soap and newspapers. it can be further divided
into staple (goods consumer purchases on a regular basis) mpulse goods (are purchased
without any planning and search effort) Emergency goods (are purchased when the need
is urgent)

2.c ~h

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: are goods that the consumer in the process of selection and purchase
characteristically compares on such bases as suitability, quality, price and style. urther
divided into Homogenous shopping goods (are similar in quality but different enough in
price to justify shopping comparisons) Heterogeneous shopping goods (differ in product
features and services that may be more important then price. The seller of heterogeneous
shopping goods carries a wide assortment to satisfy individual tastes and must have well
trained salespeople to inform and advise customers)

3.c ~
 al  has unique characteristics or brand identification for which a sufficient
number of buyers are willing to make a special purchasing effort. Specialty goods do not
 involve making comparisons; buyer invest time only to reach dealers carrying the wanted
product.

4.c 
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: are those the consumer does not know about or normally think of
buying. nsought goods require advertising and personal selling support.

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1.c aal

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: are goods that enter the manufacturer¶s product completely. They
fall into two parts raw materials and manufactured materials and parts. aw material can
be of farm products and natural products.

2.c Ja
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: installations and equipments.

3.c ~

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: operating suppliers, maintenance and repair items,
maintenance and repair services and business advisory services.

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To be branded, products must be differentiated .<hysical products vary in their potential for
differentiation. esign has become increasingly important means of differentiation.

1.c  c the size, shape or physical structure of a product.

2.c a 
 they supplement its basic functions
3.c a c al : is the level at which the products primary characteristics operate.
most products are established at one of our performance levels: low, average, high or
superior.
4.c Ja c  al  buyers expect that the product to have a high conformance
quality which is the degree to which all the produced units are identical and meet the
promised specifications.
5.c  a
l  a measure of the product¶s expected operating life under natural or stressful
conditions, is a valued attribute to some products.
6.c la
l  t is the measure of the probability that a product will not malfunction or fail
within a specific time period.
7.c 
aa
l c it is the measure of the ease of fixing a product when it malfunction or
fails.
8.c ~ l escribes the product¶s look and feel to the buyer.
9.c 
 it is the totality of features that affect how a product looks and functions in terms
of consumer requirements.
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1.c c a
 refers to how easy it is for the customers to place an order with the
company.
2.c l  refers to how well the product or service is delivered to the customer.
3.c 
allac refers to the work done to make a product operational in its planned
location.
4.c J
c a refers to training the customer¶s employees to use the vendor¶s
equipment properly and efficiently.
5.c J
c 
l refers to data, information systems and advice services that the
seller offers to buyers.
6.c aa c ac 
a describes the service program for helping customers keep
purchased products in good working order.

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1.c cal cthe core need that underlies the existence of a product family. example:
security
2.c  cal : all the product classes that can satisfy a core need with reasonable
effectiveness. Example: savings and income
3.c  c la

 a group of products within the product family recognized as having a

certain functional coherence. Also known as product category. Example: financial
instruments
4.c  c l a group of products that are closely related because they perform a
similar function are sold to the same customer groups, are marketed through the same
outlets or channels or fall within given price ranges
5.c  c 
 a group of items within a product line that share one of the several
possible forms of the product.
6.c  a distinct unit within a brand or product line distinguishable by size, price,
appearance or some other attribute

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1.c cal cnformation exchange. Communications.

2.c  c al  evices for electronic information exchange. Wireless information
devices.
3.c  c a c la

!: GSM devices.
4.c  cl: GSM Smartphones.
5.c  c
: GSM Smartphones with Symbian
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6.c a: Nokia.
7.c : Nokia N70.

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1.c  c

: it is group of diverse but related items that function in a compatible
manner.

2.c  c : also called product assortment is a set of all products and items a
particular seller offers for sale product mix consist of various product lines. A
company¶s product mix has a certain width, length, depth and consistency.

3.c Wh: the width of the product mix refers to how many different product lines the
company carries.

4.c h: the length of the product mix refers to the total number of items in the mix.

5.c 
h the depth of a product mix refers to how many variants are offered to each
product in the line.

6.c J

 : the consistency of the product mix refers to how closely related the
various product line are in the end use, production requirements, distribution channels
or some other way.

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The product mix is the set of all products offered for sale by a company.

A product line is a broad group of products, intended for similar uses and having similar
characteristics.

A product mix has following dimensions:

i.c Width - number of different product lines

ii.c Length - total number of items within the lines
iii.c epth - the variety of sizes, colors, and models offered within each
product.
iv.c Consistency ±close relationship of product lines.
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n offering a product line,companies normally develop a basic platform and module that
can be added to meet different customer requirements.

1.c ~al
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: <roduct managers need to know the sales and profit of each
itam in their line in order to determine which items to build, maintain, harvest or
divest.

2.c a"c
l t shows how the line is positioned against competitors¶ lines.
The product map shows which competitors¶ items are competing against
company¶s items.
t identifies market segments
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1.c  #lc
 : Companies normally develop their product lines rather than single
products and introduce price steps. n many lines of trade, sellers use well established
price points for their products in the line. The sellers task is to establish perceived quality
differences to justify the price differences
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 c Many companies offer optional products, features and
services along with their main product .e.g. automobile companies advertise entry level
models at low prices to pull people into the show rooms.c
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  Some products require the use of ancillary products, or
captive products. Manufacturers of razors, digital phones and cameras often price them
low and set high markups on razor blades and film.c
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ac
 cService firms engage in two-part pricing consisting of a fixed fee plus
a variable usage fee.
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  The production of certain goods like petroleum products and other
chemicals often results in by-products.c
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  Sellers often bundle products and features. <ure bundling
occurs when a firm offers its products only as bundle. E.g. tour packages offered by many
tour operators in South Asia charge prices that include travel costs, sightseeing costs and
stay and food expenses for a 7 or a 14 day tour to a exotic location.c
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Strong brand names:

9c Suggest benefits
9c Suggest product qualities
9c Are easy to say, recognize, and remember
9c Are distinctive
9c Should not carry poor meanings in other languages

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9c Varies by type of brand
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9c Line extensions
9c Brand extensions
 9c Multibrands
9c New brands
9c Co-branding

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 can be used to audit a brand¶s strengths and weaknesses.

Changes in preferences or the presence of a new competitor may indicate a need for brand
repositioning.

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<ackaging includes All the activities of designing and producing the container for a product.

<ackaging includes:

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Many factors have influenced the increased use of packaging as a marketing tool. They are:

1.c ~l#
  Given that 50 ± 70 % of all purchases are sold off on a self service basis,
the effective package must perform many of the sales tasks : attract attention, describe the
product features, create consumer confidence, and make a favourable overall impression.

à c J
cal  c ising consumer affluence means consumers are willing to pay a
little more for the convenience appearance, dependability etc.
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acac<ackages contribute to instant recognition of the company.
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4.c 

  ccannovative packaging can bring benefits to consumers and
profits to producers. e.g. Calcium Sandoz bottles targeted at children have been designed
to make them attractive to the target customers.
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The label may be a simple tag attached to the product or an elaborately designed graphic that is a
part of the package. t might carry only a brand name, or a great deal of information. Even if the
seller refers a simple label, the law may require more.

A label performs the following functions:

*c dentifies
*c Grades
*c escribes
*c <romotes

Labels eventually become outmoded and require freshening up. The label on vory soap has been
redone at least 18 times since 1890, with gradual changes in the design and letters. Companies
with labels that have become icons need to tread very carefully when initiating a redesign.

WÔÔ[~cÔc¦ÔÔ[[~c

Warranties are formal statements of expected product performance by the manufacturers.

<roduct under warranty can be returned to the manufacturers or designated repair centres for
repair, replacement, or refund. Whether expressed or implied, warranties are legally enforceable.