PRODUCT

Dr VIPUL JAIN
PhD,PGDBA,MBA,MA(Eco,),PGDMSM,BA(Eco.)
AMT-AIMA
Customer Need:  basic requirement.

Customer Want: a specific requirement for a product or

service to meet a need.

Customer Demand: a set of wants plus the desire and

ability to pay to have them satisfied.
CORE FEATURES

ASSOCIATED FEATURES
LAYERS OF THE PRODUCT

CORE LAYER (‘why’ of buying)

BASIC PRODUCT LAYER (features)
EXPECTED PRODUCT LAYER (greater set of
attributes)
AUGMENTED PRODUCT LAYER (Value for
money)
POTENTIAL PRODUCT LAYER (Future possibility)
Core Benefit

The core benefit is the fundamental need or wants that the

customer satisfies when they buy the product.

For example, the core benefit of a hotel is to provide somewhere

to rest or sleep when away from home.

Generic Product

The generic product is a basic version of the product made up of

only those features necessary for it to function.
In our hotel example, this could mean a bed, towels, a bathroom, a
mirror, and a wardrobe.
Expected Product

The expected product is the set of features that the customers expect
when they buy the product.

In our hotel example, this would include clean sheets, some clean
towels, Wi-fi, and a clean bathroom.

Augmented Product

The augmented product refers to any product variations, extra

features, or services that help differentiate the product from its
competitors.

In our hotel example, this could be the inclusion of a concierge service

or a free map of the town in every room.
Potential Product

The potential product includes all augmentations and

transformations the product might undergo in the future.
In simple language, this means that to continue to surprise
and delight customers the product must be augmented. In
our hotel, this could mean a different gift placed in the
room each time a customer stays. For example, it could be
some chocolates on one occasion, and some luxury water
on another. By continuing to augment its product in this
way the hotel will continue to delight and surprise the
customer.
Five Product Levels Example: Coca-Cola

Core Benefit
The core benefit of Coca-Cola is to quench a thirst.

Generic Product
The generic product is a burnt vanilla smelling, black, carbonated,
and sweetened fizzy drink.

Expected Product
The expected product is that the customer’s Coca-Cola is cold. If
this isn’t the case then expectations won’t be met and the drink
will not taste its best in the mind of the customer.
Augmented Product

Coca-Cola’s augmented product is that it offers Diet-Coke. How

does Coca-Cola exceed customers expectations with this product?
By offering all the great taste of Coca-Cola, but with zero calories.

Potential Product

One way in which Coca-Cola delights customers is by running

competitions. The prizes in these competitions are often things
that, “money can’t buy”, such as celebrity experiences. To continue
to delight customers over time the competition prizes change
frequently.
PRODUCT CLASSIFICATION

ON THE BASIS OF DURABILITY & TANGIBILITY

DURABLES ( Tangibles with longer period) TV & BYKES

NON DURABLES ( Tangibles with shorter period) FMCG
SERVICES ( Intangibles & perishable) EDUCATION

ON THE BASIS OF USAGE

CONSUMER PRODUCTS
Products that are used for Personal, family or Household

CONVENIENCE PRODUCTS (Products that are relatively inexpensive & are

bought frequently) STAPLE GOODS & IMPULSE GOODS
Value in marketing or customer-perceived value

It is the difference between a prospective customer's

evaluation of the benefits and costs of one product when
compared with others. Value may also be expressed as
straightforward relationship between perceived benefits and
perceived costs
SHOPPING PRODUCTS
A buyer is willing to spend time & effort in planning &
making purchase decisions ( Home appliances, TV)

SPECIALITY PRODUCTS
Products that have an unique characteristic features.
( Brand Equity, Loyalty, Willing) Antique car, Mercedes

UNSOUGHT PRODUCTS
Umbrellas,Insurance,Fire extinguisher
INDUSTRIAL PRODUCTS

Products that are purchased to produce other products

or facilitate the smooth functioning of an organization.

PRODUCT POLICY

Product mix (The set of all the products that an

organization offers to its customers) PRODUCT
LINES
PRODUCT WIDTH (Total no. of product lines)

PRODUCT LENGTH (Total no. of items in product

lines)

PRODUCT DEPTH (Sizes, Colors, Variations)

PRODUCT CONSISTENCY (Production, Distribution,

Usage)
PRODUCT MIX STRATEGIES

EXPANSION OF PRODUCT MIX

CONTRACTION OF PRODUCT MIX

TRADING UP ( Companies offering higher priced

products- ‘LIFESTYLE STORES’)

TRADING DOWN ( Adding low priced products-

Marriott corporation introduced a new chain of
hotels ‘HOLIDAY INN’ )
PRODUCT LIFE CYCLE

INTRODUCTION
GROWTH
MATURITY
DECLINE

STRATEGIES FOR INTODUCTION STAGE

RAPID SKIMMING (Higher price & Higher promotion)
SLOW SKIMMING ( Higher price & low promotion)
RAPID PENETRATION (Lower price & heavy
promotion)
SLOW PENETRATION ( Lower price & lower
promotion)
STRATEGIES FOR GROWTH STAGE

AGGRESSIVE PRICING
PRODUCTS BENEFITS
CHANGES IN PRODUCT
NEW MARKETS

MATURITY

CONCENTRATE ON PROFITABLE PRODUCTS

INCREASE IMC
INVESTING MORE IN R&D
DECLINE

PRODUCT PRUNING
CUTTING PROMOTIONAL BUDGETS
WITHDRAWING FROM THE WEAKER SEGMENTS

NEW PLC
LIMITATIONS OF PLC