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 itemstools & production equipment Installations Installations important capital items Professional Services specialized services to support a firms 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 customers 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