PRODUCT

physical goods

Services

Experience

Events

Persons

places

Properties

Organizations

Information

Ideas

Products that are marketed include

• 5 Basic levels

• Each level adds more customer value

• At this level, the core benefit is turned into a basic

product

• Basic step in designing products

• Unbranded, plainly packaged, expensive

• Expected/Formal/Tangible product

• Represents basic requirements, a customer finds essential to

buy a product

• Attributes & conditions required by the customers

• Identified build into products

• Includes brand,name,features,design,packaging and quality

level,styling,attributes,instructions manual

• As interfirm rivalry intensifies, differentiation on basis of

formal product ceases (ceiling fans)

• Marketer searches for a possible differentiation

e.g. Sony camcorder ( name, parts, styling, features,

packaging – deliver core benefit- convenient, high quality way to

capture important moments)

• Marketer prepares an augmented product that

exceeds customer expectations.

• Intangible component of the product along

with formal & core components

• Product built by adding consumer services &

benefits

• Product augmentation leads the marketer to look at the

user’s total consumption system.

• Attributes extended beyond customer expectations,

includes

1. After sales services

2. Delivery points & systems

3. Installation ( bulky products)

4. Customer education & training

5. Customer complaint management

6. Payment options (high end products)

7. Replacement/return policy

8. Guarantees/ warranties

9. Toll free number, etc.

• These are added intangibles looked for when technology

fails to differentiate

• Future competition will be in the “Augmented

Products”

• Service component is expanded that enhances the

product value

• No fixed range of services, based on customer needs

• Some may not be able to use extra services

• Augmented product is a condition of mkt maturity/of

relatively experienced/ sophisticated customers

• Potential/Future product

Includes all possible improvements under given

technological, economical, competitive conditions

Helps to attract & retain customers

These offerings differ from 1 market to another

because of varying competitive conditions

Driving force- to retain competitive advantage.

1. Consumer Products Convenience products

Shopping Product

Specialty Product

Unsought Product

Industrial Products

2. Industrial Products Materials & parts

Capital items

Supplies and Services

Consumer Products: • Bought by final consumers for personal consumption

• Categorized as…

Convenience products • Bought frequently, immediately with minimum

comparison and buying effort.

• Are low priced

• Available in many locations

e.g. Soap, candy, newspapers, fast food

Shopping Product • Characteristically compared on the basis of suitability,

quality, price and style while selection and purchase.

• Distributed through fewer outlets

• e.g. Furniture, clothing, used cars, major appliances,

hotel and airline services.

Specialty Product • Has unique characteristics or brand identification for

which a significant group of buyer is willing to make

a special purchase effort

• People travel even long distances to buy them

(Lamborghini)

• No comparison is involved in buying.

• e.g. Specific brands, types of cars, high priced

photographic equipment's, designer clothes, services

of medical/ legal specialists

Unsought Product • Consumer either does not know about/ knows about but

does not normally think of buying it.

• Require a lot of advertising, personal selling and

marketing efforts.

e.g. Life insurance, pre planned funeral services and

blood donations

2. Industrial Products: • Distinguished from consumer products on the basis of

usage

e.g. A lawn mower.

Materials & parts

i. Raw materials & parts: Farm products, (wheat, cotton, livestock, fruits, vegetables)

Natural products (fish, lumber, crude oils, iron ore)

ii. Manufactured materials & parts:

Component materials (iron yarn, cement, wires)

Component parts ( small motors, tires, castings)

Capital items Aid in buyer’s production or operations

i. Installations:

Major purchases (factories, offices)

fixed equipment ( generators, elevators, computer systems)

ii. Accessory equipment's: Portable factory equipment's and tools (hand tools, lift trucks)

Office equipment's ( computers, fax machines, desks)

Supplies and Services:

Are convenience products

i. Supplies Operating supplies (Lubricants, coal, paper, pencil)

Repair and maintenance (paint, nails, brooms)

ii. Services Maintenance and repair services (window clearing, computer repair)

Business advisory services (legal, management, consulting, advertising)