Professional Documents
Culture Documents
The Institute of Chartered Accountants of Sri Lanka
The Institute of Chartered Accountants of Sri Lanka
The Institute of Chartered Accountants of Sri Lanka
MARKETING STRATEGY
SETTING PRODUCT STRATEGY
HAFEEZ RAJUDIN
SETTING PRODUCT STRATEGY
Value-based prices
Attractiveness
of the
Market offering
Definition of Product:
“ A product is anything that can be offered
to a market to satisfy a want or need.”
Basic Product
Expected Product
Augmented Product
Potential Product
Product Levels: The Customer Value
Hierarchy
1. Core Benefit:
the service or benefit the customer is
really buying
e.g. a hotel guest is buying “rest and
sleep” .
The purchaser of a drill is buying
“holes”.
(Marketers should see themselves as benefit
providers)
Product Levels: The Customer Value
Hierarchy
2. Basic Products:
at the second level Marketers has to
turn the core benefit into a basic
product.
3. Expected Product
At the third level the marketer prepares
an EXPECTED PRODUCT, a set of
attributes and conditions buyers normally
expect when the purchase a product.
e.g. hotel guest expect a clean bed, fresh
towels, working lamps, and a relative
degree of quite.
Product Levels: The Customer Value
Hierarchy
4. Augmented Product:
At the fourth level the marketer prepares an augmented
product that exceeds customer expectations.
5. Potential Product:
This encompasses all the possible
augmentations and transformations
the product or offering might undergo
in the future.
Here is where companies search for
new ways to satisfy customers and
distinguish their offer.