Amity Business School Marketing & Sales Programme, IInd Semester Product & Brand Management Varsha Khattri
What is a Product? A PRODUCT is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
Combinations of the above
What is a Service?
A SERVICE is a form of product that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
PRODUCT LEVELS Core Benefit Augmented Potential Expected Basic
Product Levels Fundamental service or benefit that the customer is really buying Containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features A set of attributes & conditions buyers normally expect when they purchase the product
Exceeds customer expectations Encompasses all possible augmentations & transformations the product might undergo in future
Product Hierarchy Need Family Product Family Product Class Product Line Product Type Brand Item
7 Levels of Product Hierarchy Product Need — to satisfy a need Product Family — all the product classes that can satisfy a core need with reasonable effectiveness Product Class — a family of products having similar function
Product Line — a group of products with closely related functions, are sold to the same customer groups, are marketed through the same channels, or fall within given price ranges
Product Type — products within a line having similar form Brand — a name representing a product or line
Item (Stock Keeping Unit or Product Variant) — a unit within a brand or product line distinguishable by size, price, appearance or some other attribute