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Product Concepts: Marketing Management
Product Concepts: Marketing Management
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Chapter
Product Concepts
SHH Kazmi, 2007
Product Concepts
A product is anything, tangible or intangible, which can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
Thus, a product can be a physical entity (e.g., computer, shirt, or soap), some service (e.g., healthcare, tuition, or bank), a retail store (e.g., music store, locality grocer, or supermarket), a person (e.g., a singer, physician, or politician), an organisation (e.g., business organisation, trade organisation, or not-for-profit organisation), a place (e.g., village, city, or country), or idea (e.g., social issues, concepts, or population control). We use the word product innumerably in everyday life. SHH Kazmi, 2007
10-2 Marketing Management Text and Cases, S H H Kazmi Excel Books
Product Concepts
Product is any thing that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. A product mix (also called product assortment) is the set of all products and items that a particular seller offers for sale.
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Product Concepts
For example : Kodaks product mix consists of two strong product lines: information products and image products. A companys product mix has a certain width, length, depth, and consistency.
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Product Concepts
Width:
The width of the product mix refers to how many different product lines the company carries. HUL has different product lines. It offer different products for the consumers. The product lines offered by HUL are home and Personal care, Food and Beverages and Industrial, Agricultural and others.
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Product Concepts
Length:
The length of a product mix refers to the total number of items in the mix.
This is obtained by dividing the total length by the number lines. Procter and Gamble offers different product line width.
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Product Concepts
Depth: The depth of a product mix refers to how many variants are offered of each product in the line. Hindustan Unilever Limited offers tooth paste named Close Up at different sizes like 20 grams, 50 grams, 150 grams etc. In this case
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Product Concepts
Consistency: The consistency of the product mix refers to how closely related the various product lines are in turns of the end use, production requirements, distribution channels, or some other way. P&Gs product lines are consistent in so far as they are consumer goods that go through the same distribution channels.
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Product Concepts
WIPRO : Software, Hardware, Soaps, Baby Care, Cooking media, lighting and Medical equipments MODI : Cements, Tyres, Cigarettes, Telecom equipments, Cellular service, Paper products, Hardware and Office Automation equipments
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Product Concepts
A product can be described at five levels: The first level is the core benefit The second level is a generic product The third level is the expected product The fourth level is the augmented product The fifth level is the potential product
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Product Concepts
Product Classification
Products can be grouped under one of the two general categories. Consumer products are those that we buy for our personal or family use or consumption. Organisational products represent those products that firms and institutions buy to produce other products, to resell, or to run day-to-day operations.
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Product Concepts
Consumer Products
Based on durability and tangibility, there are three categories:
Durable goods
Non-durable goods
Services
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Product Concepts
The most widely used approach to classifying consumer goods puts them under four categories: Convenience Products Shopping Products Specialty Products Unsought Products
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Product Concepts
Organisational Products
Organisational or industrial goods can be classified into seven categories based on their characteristics and intended use: raw materials, capital equipment,
accessory equipment,
component parts, process materials,
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Product Concepts
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Product Concepts
Line Stretching
Downward Line Stretch Upward Stretch Both-Way Stretch Line Filling
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Product Concepts
New Product High Price Present Product High Price New Product High Price Present Product
Low
New Product
Low
Present Product
Low
New Product
Low Quality
High
Low Quality
High
Low Quality
High
Downward Stretch
Upward Stretch
Both-Way Stretch
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Product Concepts
Line Pruning
Line pruning is just the opposite to line stretching and involves a deliberate decision to cut down the number of items in product line(s).
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Product Concepts
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