What is product Different types of products etc...

1. A good, service, person, place,
event or organization offered to
consumers to satisfy his
need or want.

2. Thinkof products that have
changed our lives in a big way

3. A good is a tangible product, which can be
seen and touch. These tangible items can be
produced in bulk and inventoried.
 ForExample, Switches from Bajaj Electricals
are goods.

4. A service is an intangible product, which
requires simultaneous consumption and
production. These are also perishable in
nature.
 For example, A Wockhard hospital offers
heart surgery, which consumers can not
see but need to undergo when there is a
problem in the heart. Hence surgery a
service.

5. A product may be person also. Here marketer
tries to buy and sell the celebrities or sports
persons of a league or club etc…
 For, example, Board of cricket control in
India (BCCI) asks its Indian premier league
(IPL) teams to buy Iconic players and foreign
players for certain price.

6.  Anevent is also considered as product. Many
event management companies earn their
revenue by selling tickets and advertisement
space at the event.
 Thefollowing example explains how an event
can be marketed.

8.  Anorganization is also considered as a
product. It can be bought and sold on the
basis of value of the firm.
 Example Tata’s bought Tetley for £271mn on
27 th February 2000

9.  Many state governments and central
governments sell their places to get the pie
in the tourism market. Here governments
provides advertisements of a place to attract
tourists from India and abroad.
 For example, Karnataka government under
‘one state many world’ campaign highlighted
historical places, wildlife, waterfalls etc...
 In the following advertisement it provides
the inputs on Hampi to tourists, a historical
place in Karnataka.

13. 1. Core product: This is the fundamental goods
or service offered to the consumer. E.g.
Hospital services
2. Generic product: This is the basic version of
the product. E.g. Hospital having
doctors, nurses, beds and laboratories.
3. Expected product: The minimum attributes
consumer expects in the product. E.g.
Hospital should have qualified doctors, good
service and proper amenities.

14. 4. Augmented product: Inclusion of value added
services to the expected product to distinguish it
from competitors. E.g. Online or tele medicine
facilities, expert knowledge sharing, 24 hour
ambulance service etc...
5. Potential product: these are future products
provided by the company which customer didn’t
anticipate. Ultimately consumer will be
delighted by this product. E.g. Medical insurance
from the hospital, after service care etc…

15. Another example ?
Imagine yourself as a Product manager
What steps in product augmentation
should be undertaken for competitive
advantage.

16. Durability and Tangibility Classification:
 Nondurable goods
 Durable goods
 Services

17.  Products are classified on basis of use into
two broad categories. They are consumer
products and business products.
1. Consumer products are purchased by the
consumer for his personal consumption.
2. Business products: These products are
purchased by business concern for further
product development

19. As these products are purchased by the final
consumer for his own consumption, the
market is very big. Hence consumer products
are classified into four different categories.
They are -
a. Convenience goods.
b. Shopping goods
c. Specialty goods
d. Unsought goods.

20. The fast moving consumer goods, which are
purchased regularly with less amount of effort.
1. These are purchased frequently.
2. Customer involvement is very low.
3. Price of the product is very low.
4. Intensive distribution is used to reach the
consumer.
5. The stock turnover is high.
6. Aggressive promotion is required
Example: soaps and detergents.

21. High consumer involvement products in which
consumer process the information of product
suitability, quality and price.
Comparing with convenience goods, shopping goods
are purchased less frequently. Consumer takes
lot of time to search and evaluate the information.
These products are available in selected outlets.
The price of the product is very high.
For example, a consumer want to purchase washing
machine will collect the information on type of
washing machine, type of control, loading, wash
method, pre wash, delicate wash, cycle time, after
sales service, sensors and water consumption.

22. A tangible product for which a consumer
posses high brand loyalty and ready
to wait, or spend time.
i. Consumers are having strong brand loyalty.
ii. Usually companies adopt premium pricing
strategy.
iii. Exclusive distribution and selective
communication strategies are adopted.
To illustrate, a consumer is willing to pay Rs
32000 for Bose Digital home theater though
competitors’ products are available at Rs 15,000
to Rs 25000.

23. These products are called unsought because
consumer usually unaware or ignorant to
purchase. Marketers need heavy promotion
activities to educate and sell their products.
Insurance is the product which most of the
consumer are aware but very few are willing
to purchase.
Life Insurance Corporation trains its agents to
promote and sell aggressively. These agents
provide lot of inputs regarding insurance to
consumers.

24. Business products are purchased by the
business consumer who uses this product as a
material, part, capital item or service in
producing his/her final product.
For example, CET offers range of services to
Birla copper, Jindal Vijayanagar steel and
Mukund limited. These services are used to
develop the final products of these
companies.

25. Centre for Engineering & Technology
Center for Engineering & Technology (CET), an ISO: 9001 certified
organization is the design,engineering & consultancy unit of SAIL. It has
its Head Office at Ranchi, Sub Centers at
Bhilai,Durgapur, Rourkela, Bokaro, Burnpur & Bhadravati, Unit Offices
at Bangalore, and New Delhi for formulation of Interplant Standards for
Steel Industry. As a solution provider for all project needs, CET had
been rendering complete range of services not only to the Steel Plants
under SAIL but also to various clients other than SAIL – both within and
outside the country. Some of the important clients other than SAIL
include EGITALEC (Egypt), Ashok Steel (Nepal), Chittagong Steel
Mills(Bangladesh), Birla Copper, Mukand Ltd., Jindal Vijayanagar Steels
Ltd., National Iron & Steel Co.,
Hindustan Zinc Ltd., National Mineral Development Corporation and
Romelt SAIL(India) Ltd.,CET is also the nodal agency for acquisition and
lateral transfer of technologies within SAIL plants.
The range of services includes conceptualization, project evaluation &
appraisal, project consultancy, design & engineering and project
management in the areas of iron and steel making.
Apart from this, CET has been providing its services in the related areas
like mine planning and development, infrastructure
development, industrial piping, industrial warehousing, material

26. The different stages in the product and their
attributes are listed below
1. Need family : The core need that underlies
the product family. Eg. security
2. Product family : All the product classes that
can satisfy a core need with reasonable
effectiveness. Eg. savings and income
3. Product class : A group of products within
the product family recognized as having a
certain functional coherence Eg. Financial
instruments

27. 4.Product line : A group of products within a
product class that are closely related
because they function in a similar manner or
are sold to the same customer groups or are
marketed through the same types of outlets
or fall within given price ranges. Eg. Life
insurance
5. Product type : Those items within a product
line that share one of several possible forms
of the products. Eg. Term Life insurance

28. 6. Brand : The name associated with one or
more items in the product line that is
used to identify the source or character of
the item Eg. ICICI
7. Item : A distinct unit within a brand or
product line that is distinguishable by
size, price, appearance, or some other
attribute. Eg. ICICI Pru life
(Adopted from Kotler Philip, Marketing
Management)

29.  Inplanning its market offering the
marketer needs to think through the
levels of the product