The document discusses the concept of products. It defines a product as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It then discusses the meaning, features, levels, and classification of products. Products can be classified based on tangibility, durability, user type as consumer or industrial goods, and social benefit. The document also discusses product mix decisions, product line appraisal, and product hierarchy.

1. Product
Prepared By,
Sagar Gadekar

2. What is a Product?
 Anything that can be offered to a
market for attention, acquisition, use,
or consumption and that might
satisfy a want or need.
 Includes: physical objects, services,
events, persons, places, organizations,
ideas, or some combination thereof.

3. Meaning and Definition Of Product
 A Product can referred as a
“Set of tangible offering made available to the consumer to satisfy his/
her needs.”
 According to George Fisk,
“ Product is cluster of psychological satisfactions.”
 According to W. Alderson,
“ A product is a bundle of utilities consisting of various features and
accompanying services.”
 According Philp Kotler,
“ A product is a bundle of physical services and symbolic particulars
expected to the yield satisfactions or benefits to the buyer.”

4. Features of the Product
 Tangibility.
 Intangible attributes.
 Associated attributes.
 Exchange values.
 C onsum er Satisfaction.

5. Levels of a Product
 Basic Product Level.
This core level of a product explains the reasons for which a given
customer has made purchase. This layer mainly includes the generic
ingredients of a product.
Example- A customer buying a vehicle for transportation.
A customer buying a mobile for communication.
 Formal Product Level.
In addition to core product a customer expects many other things. One
can satisfy this needs with physical attributes, brands name, packaging,
color, style, aesthetic look and quality. This helps the seller to give a
distinctive appeal differentiate between the formal from the core product.

6. Levels of a Product
 Augmented Product Level
The intangible components of products of a product along with the formal
and core components is called Augmented Products. The augmented part
of product is nothing but the associated services like-
• Home Delivery.
• Installations.
• After Sales Services.
• Customer Education and Training.
• Customer care.
• Financing.
 Free check-ups and consultations.
 Warranty and Guarantees.
 Replacement policy etc.

7. Levels of a Product
 Potential Product Level (Future Product)
The potential products consists of every relevant thing
that one seller can offer to attract and retain customers.
At this level of the product, all possible augmentation and
transformation may be adopted to differentiate the offer
on the basis of product features and services.

8. Levels of a Product

9. Classification of Products
 On the basis of user type, products are classified as Consumer
Goods and Industrial Goods.
 Consumer Goods
 Convenience products
 Shopping products
 Specialty products
 Unsought products
 Other types of products
 Organizations, persons, places, ideas

10.  Convenience Goods
The consumer with little purchasing efforts
frequently purchase convenience goods. They
do not shop extensively for such a products.
These products are brought as per the
convenience of customer without much
planning. The customer do have strong brand
preference for such a convenience goods,
which ultimately results in fasts and repeat
purchase(s).(Generally Non Durable)
Example-Newspapers, Cigarettes, Soft Drinks

11.  Shopping products
The shopping goods are those on which customer
which spends generally spends reasonable time on
collecting the information by searching various
sources, comparing the prices and quality with the
other seller, bargain and then ultimately purchase.
The shopping goods are far more expensive than
convenience goods and are available at fewer outlets.
For shopping goods along with price and quality, the
customer also give importance to style, variety, range,
color, patterns etc. (Durable in Nature)
Example- Watches, Garments, Shoes etc.

12.  Specialty Products
There are consumable products which can only be
purchase from specialist retailers and which consumer
select deliberately.
Example- Medicines, alcoholic beverages, audio sound system,
Jewellery, painting etc.
 Unsought Goods
Unsought goods are unknown to potential customers. Many
times, customer are not even aware of the existence of such
products. The need for such product arises normally when
customer see and hear about it. That is the reason why such
unsought goods demand extensive advertising and personal
selling.
Example- Smoke detectors, insurance, glass coating films,
encyclopedia. etc

13. Classification of Products
 Industrial Goods.
 Raw Material
 Components Parts
 Installation
 Accessory and Equipment
 Operating Supplies

14. Classification of Products
 Classification on the basis of Durability and Tangibility
 Durable Products
Eg. TV, washing machines, Refrigerator.
 Non Durable products
Eg. Cold Drinks, tooth paste
 Services
Eg. Banking Services, Entertainment Services, Insurance,
Mobile Services, Courier Services, tour travel Services,
Advertising Services, Logistic Services, Airline Services
etc.

15. What is a Service?
 A form of product that consists of activities,
benefits, or satisfactions offered for sale that
are essentially intangible and do not result in
the ownership of anything.
 Examples: banking, hotel, airline, retail, tax
preparation, home repairs.

16. Nature and Characteristics of a Service

17. Product Classification
1. Based on the nature.
2. Based on the Consumer intention.
3. Based On Social Benefit.
 Based on the nature.
• Goods
• Services
• Ideas
• Experiences
• Events
• Persons
• Places
• Properties
• Organization

18.  Based on the Consumer intentions
2. Consumer Product.
• Convenience products
• Shopping Products
• Specialty Products.
• Unsought Products.
7. Industrial Product.
• Raw Material.
• Capital Equipment.
• Accessory Equipment.
• Component Parts.
• Process Material Supplies.
• Industrial Services.

19.  Based on the Social Benefits.
• Pleasing Products
• Deficient Products
• Salutary Products
• Desirable Products

20. Product Mix Decisions
 Product Mix: All of the product lines and
items that a particular seller offers for sale.
 Width: The number of different product
lines the company carries.
 Depth: The number of versions offered of
each product in the line.
 Consistency: How closely related the various
lines are.

21. Product Line Appraisal
 A growing firm which always intends to succeeds, do
product line appraisal(s) regularly with reference to,
 New product launching.
 Product Differentiation.
 Product withdrawal or removal.
 Customer preference.
 Level of competition.
 Pricing Strategies.
 Quality improvement.
 Market Coverage.
 Sales Volume.
 Market share.

23. Product Line Appraisal
 Stretching Up
Example:-Launch of Bajaj Eliminator, Introduction of Swift and SX4 is
stretching up strategy.
 Stretching Down
Examples:- Bajaj Boxer, Tata Nano.
• The strategy is manly using for reasons like
 Covering Untapped lower end market.
 Increase the competition in existing segments.
 Economic Slowdown.
 Emphasis on affordability aspects of products.
 Line filling
Examples:-Launce of Maruti Aulto in Between two existing brands like Maruti 800 and
Maruti Zen

24.  Line Trimming
The strategy is manly using for reasons like
• Better offering from nearest competitors.
• Incapable of adapting to current technological up
gradation.
• Changing needs, likes-dislikes, tastes, habits, and
performances of target segments.
• Scarcity of inputs raw materials.
• Improper support of channel members.
Examples:-Bajaj Sunny. Nokia 3310 etc.

25. Product Hierarchy
Product Hierarchy Nature Example
Need Family Basic need that contributes product Covering Human Body.
family.
Product Family All the product classes that satisfy the Product quality, price structure
basic need with varied degree of and utility.
satisfaction.
Product class A group of products within the family Cotton polyester, synthetic, fabric
having utility advantages. etc.
Product line Type of products in product class and Cotton spread shit polyester
each type, number of items pertaining shirting and suiting's, synthetic
to specific size, color, quality etc. dress material.
Product type Different form of Product in terms of Garments, ladies dress
quality and usage.
Brands 1) An associated name of items in
product line for identification of
particular items and quantity.
2) A certification of federation or
group of companies manufacturing
similar products to certify quality.
Items A particular products passed
through all above hierarchical
stages.