Setting

Product
Strategy
Identifying Need
Creating Value
Components of the Market Offering
Value-based prices

Attractiveness of
the market offering

Product features Services mix

and quality and quality
Five Product Levels
Potential product
Augmented product
Expected product
Basic product
Core benefit
 Consumer-Goods Classification
Convenience and Consumables

Buy frequently & immediately

> Low priced Buy less frequently
> Many purchase locations > Gather product information
> Includes: > Fewer purchase locations
• Staple goods > Compare for:
• Impulse goods • Suitability & Quality
• Emergency goods • Price & Style

Need not developed

Special purchase efforts > High value commitment
> Unique characteristics > Discretionary. Not urgent
> Brand identification
> Few purchase locations
 Product Mix

Width
Width--number
numberofofdifferent
different
product
productlines
lines

Length
Length--total
totalnumber
numberof
of
items
items
within
withinthe
thelines
lines

Depth
Depth--number
numberofofversions
versions
of
ofeach
eachproduct
product
Product Mix

https://youtu.be
/9y65-JDDifM
 Product-Line Length
• Line Stretching
– Down-market
– Upmarket
– Two-way
• Line Filling
• Line Modernization
• Line Featuring & Line Pruning
 Product Management

Product Management

Product Development Market Development

 The Product Hierarchy
The product hierarchy stretches from basic needs to particular items that
satisfy those needs. We can identify six levels of the product hierarchy, using
Ice- Cream as an example:
1. Need family— Example: Hunger
2. Product family— Example: Food
3. Product class—Example: Desserts
4. Product line—. Example: Ice Cream
5. Product type—Example: Bar Icecream
6. Item (also called stock-keeping unit or product variant)—Example: Amul
Choco Bar 50 gm
Packaging
Role of Packaging Material
Connected Package

https://youtu.be/85NWP_psLOo
Labeling, Warranties, and Guarantees

• Labeling
– Identification and description of product
• Warranties
– Assurance of performance by the manufacturer
• Guarantees
– Promise of general or complete satisfaction
Have Fun
learning