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Product

The document discusses different levels of a product and how products can be classified. It outlines 5 levels of a product: 1) core benefit, 2) basic product, 3) expected product, 4) augmented product, and 5) potential product. Each level adds more customer value. Products can also be classified based on durability, tangibility, and use into durable goods, nondurable goods, and services. Additionally, consumer goods are classified as convenience goods, shopping goods, specialty goods, or unsought goods depending on shopping habits.

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Lalit Kumar Sharma
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196 views15 pages

Product

The document discusses different levels of a product and how products can be classified. It outlines 5 levels of a product: 1) core benefit, 2) basic product, 3) expected product, 4) augmented product, and 5) potential product. Each level adds more customer value. Products can also be classified based on durability, tangibility, and use into durable goods, nondurable goods, and services. Additionally, consumer goods are classified as convenience goods, shopping goods, specialty goods, or unsought goods depending on shopping habits.

Uploaded by

Lalit Kumar Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PRODUCT

Many people think that a product is a tangible offering, but a product can be more than that., a product is anything that can be offered to a market to satisfy a want or need . Products that are marketed include a physical goods, services , experiences, events, persons, places, properties, organization, information, and ideas .

Product levels : the customer value hierarchy


In planning its market offering, the marketer

needs to address five product levels .


Potential product Augmented product
Expected product

Basic product
Core benefit

Each level adds more customer value , and the five constitute a customer hierarchy .

1Core benefits- this is the fundamental


level .the service or benefit the customer is really buying. A hotel guest is buying rest and sleep. the purchase of drill is buying holes. marketers must see themselves as benefit providers .

2Basic product- At the second level ,the


marketer has to turn the core benefit into a basic product. Thus a hotel room includes a bed, bathroom, towels, desk, dresser, and closet .

3Expected product
- At the third level, the marketer prepares an

expected product, a set of attributes and conditions buyers normally expect when they purchase this product. Hotel guests expect a clean bed, fresh towels, working lamps, and a relative degree of quiet. Because most hotels can meet this minimum expectation, the traveler normally will settle for whichever hotel is most convenient or least expensive.

Augmented product
At the fourth level , the marketer prepares an

augmented product that exceeds customer expectations. In developed countries, brand positioning and competition take place at this level. In developing countries and emerging markets, competition takes place mostly at the expected product level. However in India, there is a visible move by some companies to augment their products and services by providing superior customer experience.

The new competition is not between what

companies produce in their factories , but between what the add to their factory output in the form of packaging, services, advertising, customer advice financing, delivery arrangements, warehousing, and other things that people value .

Some things should be noted about product augmentation strategy. First, each augmentation adds cost. Second, augmented benefits soon become expected benefits and necessary points-of-parity . Today`s hotel guests expect cable or satellite television with a remote control and high-speed internet access or two phone lines. This means competitors will have to search for still other features and benefits . third , as companies raise the price of their augmented product, some competitors offer a stripped-down version at a much lower price.

Potential product
At the fifth level stands the potential product,

which encompasses all the possible augmentations and transformations the product or offering might undergo in the future, here is where companies search for new ways to satisfy customers and distinguish their offer.

Product classification
Product can be classified on the basis of characteristics :

Durability , tangibility, and use .each product has an appropriate marketing-mix strategy . Durability and tangibility product can be classified into three groups , according to durability and tangibility : 1 Nondurable goods these are tangible goods normally consumed in one or a few uses, like beer and soap . Because these goods are consumed quickly and purchased frequently, the appropriate strategy is to make them available in many locations, charge only a small markup, and advertise heavily to induce trail and build preference .

Durable goods these are goods that normally survive many uses : refrigerators, machine tools,

and clothing . Durable products normally require more personal selling and service, command a higher ire more seller guarantees . Services these are intangible, inseparable, variable, and perishable products . As a result , they normally require more quality control, supplier credibility , and adaptability . Examples include haircuts, legal advice , and appliance repairs .

Consumer-goods classification
The cast array of goods consumers buy can be classified on the basis of shopping habits . We can distinguish among convenience, shopping, specialty, and unsought goods .

Convenience goods the consumer usually purchases


frequently , immediately, and with a minimum of effort. Examples include tobacco products, soaps, and newspapers, convenience goods can be further divided . Staples goods- consumer purchase on a regular basis . Exa. Colgate toothpaste . Impulse goods are purchased without any planning or search effort . Exa. -chocolates, candy bars and potato chips are impulse goods . Emergency goods when need is urgent. Exa . umbrella etc.

Shopping goods these are goods that the

consumer, in the process of selection and purchase, characteristically compares on such bases as suitability , quality, price, and style. exa. furniture, clothing, used cars . Homogeneous shopping goods these are similar in quality but
different enough in price to justify shopping comparisons.

Heterogeneous shopping goods these are differ in product


features and services that may be more important than price .

Specialty goods these goods have unique characteristics


or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort. Examples include cars, stereo components, photographic equipment, and men`s suits .

Unsought goods these goods are those the consumer does not
know about or does not normally think of buying, like smoke detectors. The classic example of known but unsought goods are life insurance , encyclopedias, and reference books, unsought goods require advertisement and personal-selling support .

Differentiation
Form Features Performance Conformance quality Durability Reliability Style

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