PRODUCTA market offering, whether tangible or intangible, that some one wants to purchase and consume.

Anything that can be offered to a market to satisfy a

• Want or• Need

Product classif ication

Non – durable products

Durableproducts

Services

Categories of consumer products

Convenience products

Shopping products

Specialty products

Emergency products

Unsought products

Convenience products(house hold products,cleaning products,personal care products etc.)

Appeal to a very large segment

Consumed regularly and purchased frequently

• High purchase volume

Low

Prof it per unit sold is very low

Sell in large volume to make profi ts

• Price:

•Distr ibution:In mass through retail outlets as manyas possible

Consumer spend less t ime in spending

Shopping products(clothing products, personal services, electronic products,

& household furnishing)

• Consume on less frequent schedule compared to convenience products.

• Relatively expensive than convenience products

• Consumer take more time in locating the products

• Target market is smaller

Price:

Distribution: Selective in choosing distr ibution outlets

Specialty product(high-end luxury automobiles,celebrity hair care experts etc.)

Price: Carry a high price tagConsumption less, consumers more selective

Target market very small

Like to shop from the retail shop that provides the best value.

Distr ibution: Limited outlets for selling to the point of being exclusive.

Emergency products:Need occurs due to sudden events and for which pre-purchase planning is not considered.

Unsought products:Purchase is unplanned(impulse purchasing)

Occur due to marketer’s action

Product levels: customer value hierarchy

•Core benefit: The service or the benefit which the customer is really buying

•Basic product:The basic features which ought to be there with the product to satisfy the core benefit

•Expected product: the features which a consumer expects from the product

•Augmented product

•Potential product

Product mix (product assortment)

A set of all products and items a particular seller offers for sale

A product mix consists of various product l ines.

Product mix has:

•Product mix width

•Product mix depth

•Product mix consistency

Product-mix width: the total number of different product lines the company carries.in e.g. P&G has a product mix width

of five lines.

Product-mix depth:the total number of items in the mix.in e.g.it is 20.

Average length of a line:Total length

Number of product lines=

20

5= 4

Product-mix consistency: refers to how closely related the various product-lines are in end use, production requirements,

distribution channels,or some other way

Detergents Toothpaste

Bar-soap DisposableDiapers

Paperproducts

Ivory snowDreftTideCheerDashBoldGainEra

Gleem Crest

IvoryCamayZestSafeguardOil of Olay

PampersLuvs

CharminPuffsBounty

Procter & Gamble

ProductLine

Length

Width of product l ine: refers to how many variants are offered for each product in a line

Product differentiation:Form

Features Performance quality

Conformance quality

Durabil i ty Reliabil i ty

Reparabil i tyStyle

CORE BENEFIT

BASIC PRODUCT

EXPECTED PRODUCT

AUGMENTED PRODUCT

POTENTIAL PRODUCT

Product Management

Core Benefit

The most fundamental benefit or service the customer is buying

Product Management

Basic Product

Conversion in to Tangibles

Product Management

Expected Product

A set of attributes and conditions buyers normally expects when they purchase the product

Product Management

Augmented Product

Which exceeds customer’s expectations The new competition is not on what firms manufacture in the

factory 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………………..Levitt

Each augmentation adds cost and slowly becomes potential benefit.

Product Management

Potential Product

Which encompasses all the possible augmentations and transformations the product might undergo in the future

Companies search for new ways to satisfy customers and distinguish their offer.

Product Management