product classification, how companies differentiate product, what is product design and

1. Created By
Shwetal Kadam
Cardiff metropolitan university
Universal business school
09-04-2015

2. • 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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3. • 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.g
need= food( basic) , want = chicken( specific), demand=
KFC ( want backed by money)
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4. • 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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5. 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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6. Product classification:
1. Depending on durability & tangibility
• Durable : furniture , clothing, machine
• Non durable : frequently used =soap, toothpaste
• Services: intangible
2.Consumer goods
Convenience 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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7. Product classification:
3.Shopping goods
We 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.g
farm goods, natural, semi manufactured ,parts, materials, capital items(P&M,
materialistic assets of firm), supplier services, maintenance services
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8. 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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9. How products are differentiated ?
Durability:
expected life
Reliability
trust 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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10. 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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11. Stay tuned for more about
this chapter! 
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