A product is anything that can be offered to a market tosatisfy a want or need, including physical goods, services,experiences, events, persons, places, properties,organizations, information, and ideas.
One can say a product is a good, service, or idea consisting of a bundle oftangible and intangible attributes that satisfies consumers and is received inexchange for money or some other unit of value. a product therefore is a bundle of physical, chemical and / or intangibleattributes that have the potential to satisfy present and potential customerwants. In addition to the physical Good itself, other elements include thewarranty, installation, after sales service accessories and package. A product cab be define as: includes both physical products (e.g. cars,washing machines, DVD players) as well as services (e.g. insurance,banking, private health care).
PRODUCT ATTRIBUTES Tangible attribute: package. Label, related services Intangible attribute: perception, need satisfying ability External attribute: social expectations, environmental impact PRODUCT PLANNING: the act of making and supervising thesearch, screening, development and commercialization of newproducts
Core benefitThe fundamental or first level is the core benefit. The service or benefit thecustomer is really buying. Doors and windows as interiorsBasic productAt the second level, the marketer has to turn the core benefit into a basic product.Designs and fixtures into doors and windowsExpected productAt the third level, the marketer prepares an expected product, a set of attributesand conditions buyers normally expect when they purchase this product. Variationsof materials are to be expected as in metal, wooden, fibre etc.Augmented productAt the fourth level, the marketer prepares an augmented product that exceedscustomer expectations. Now the doors and windows are mere core products butthe market is getting penetrated with interior designings elements as well.Potential productAt the fifth level stands the potential product, which encompasses all the possibleaugmentations and transformations the product or offering might undergo in thefuture. So now the Italian Kitchen model, modular kitchen, vitrified tiles, woodenflooring…… precisely Home Decorators………… E.g. Gogrej furnitures.
Product classificationMarketers have traditionally classified products on the basis ofcharacteristics:Nondurable goodsNondurable goods are tangible goods normally consumed in one or fewuses, like Dairy products, fruits, vegetables, shampoos, soaps ect.Durable goodsDurable goods are tangible goods that normally survive many uses.Examples include refrigerators, machine tools and clothing.ServicesServices are intangible inseparable, variable and perishable products.Examples include haircuts, legal advice, and appliance repairs.
The Product HierarchyNeed familyProduct familyProduct classProduct lineProduct typeItem
Product mixesA product mix is the set of all products and items a particular seller offers for sale. Aproduct mix consists of various product lines.Product mixes also called a product assortment.A company product mix has a certain width length depth and consistency.WidthThe width of a product mix refers s to how many different product lines the companycarries.LengthThe length of a product mix refers to the total number of items in the mix.DepthThe depth of a product mix refers to how many variants are offered of each product in theline.ConsistencyThe consistency of the product mix refers to how closely relate the various product linesare in end use.
Branding strategy Brand Equity is the positive differential effect that knowingthe brand name has on customer response to the product orservice.4 consumer perception dimensions:differentiation (what makes the brand stand out),relevance (how consumers feel it meets their needs),knowledge (how much consumers know about the brand),andesteem (how highly consumers regard and respect thebrand).
Brand valuation is the process of estimating the totalfinancial value of a brand.High brand equity provides a company with manycompetitive advantages.High level of consumer brand awareness and loyalty.More leverage in bargaining with resellers.More easily launch line and brand extensions.Defense against fierce price competition.Forms the basis for building strong and profitablecustomer relationships.The fundamental asset underlying brand equity iscustomer equity—the value of the customerrelationships that the brand creates.
A company must consider 4 servicecharacteristics when designing marketingprograms: Service intangibility means that services cannot beseen, tasted, felt, heard, or smelled before they are bought. Service inseparability means that services cannot be separated from theirproviders, whether the providers are people or machines. Because thecustomer is also present as the service is produced, provider-customerinteraction is a special feature of services marketing. Service variability means that the quality of services depends on whoprovides them as well as when, where, and how they are provided. Service perishability means that services cannot be stored for later sale oruse.