Created By Shwetal KadamCardiff metropolitan university Universal business school 09-04-2015

• While buying customer focuses on 3 main areas:Product ,services ( customer looks for variety and quality )Price ( expects for value for money )

• Great brands always have a great product

• * products term mentioned henceforth can include the intangible products / services like events, experience

INTRODUCTION

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• Marketing is about making products perfect for customer needs that they sell automatically and profitably.

• Therefore product strategy also starts with understanding needs or wants ( two are different) e.gneed= food( basic) , want = chicken( specific), demand= KFC ( want backed by money)

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• To satisfy these needs of different level ,product has to have different levels to fit.• We can say every product level is for different segments of the market.• Product levels explained :

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Sometimes before launching a product for particular need launching a new category is also a smart move

example: GINGER launched new category ”smart basics”

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Product classification:1. Depending on durability & tangibility • Durable : furniture , clothing, machine • Non durable : frequently used =soap, toothpaste• Services: intangible

2.Consumer goodsConvenience goods: (newspaper, water bottle) available easily two types further staple goods= purchase on regular basis

impulse goods= unplanned purchase( usually at cash counter we pick chocolates )

emergency goods= I need to have umbrella in Mumbai immediately, for rains and a sunny day too !

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Product classification:

3.Shopping goodsWe compare a lot and then purchase furniture, cloths, washing machine

Homogeneous shopping goods similar quality but diff in price

4. Specialty goods identifies by brands, e.g Merc

5. Unsought Goods generally do not think unless forced to think , life insurance

6. Industrial goods depends on how they enter the industry and their cost e.gfarm goods, natural, semi manufactured ,parts, materials, capital items(P&M, materialistic assets of firm), supplier services, maintenance services

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How products are differentiated ?

Form:different pills

containing the same drug aspirin

Feature different

mobiles of same price

Customization Specially

designed study course

Quality either high end or low

end product

Conformance quality : diff units perform

similar ( persistent )

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How products are differentiated ?

Durability: expected life

Reliabilitytrust that

product will function as per need

Reparability Unlike china

products

Style Look and feel,

aesthetics

Services are also differentiated

depending upon ease of ordering,

installation, return ease, consulting etc.

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The product design

this is The totality of features how the product looks, feels, functions

Marketers invest on form, feature, quality, aesthetics and hence altogether the design is established how much to invest where depends on the needs and segments

The good design attributes connect product to brand Tata steel is reliable, durable TATA is reliable brand

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Stay tuned for more about this chapter!

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