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Understanding Market Offer:

Products and Services

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Scope

1. What is product

2. Classification of product3. Distinction between product family, class,

type etc.

4. Review brand-related terminology5. Branding strategies

6. Packaging and labeling.

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Lesson 1

Core & Augmented Product

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Augmentedproduct AUXILIARY

CHARACTERISTICS

Core & Augmented Product

PrimaryCharacteristics

Coreproduct

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PRODUCT: THREE LEVELS

i) The core physical product, service orbenefit.

ii) The tangible product: quality level,features, styling, brand name &packaging.

iii) Augmented product. Delivery & credit,warranty, SAS, installation

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Product Strategy & Product Concept

Selection and blending of a products primary &auxiliary dimensions into a unified mixemphasizing a particular set of consumer benefits

Colored paperclips that

dont rust

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SERVICE AUGMENTATION(BASED ON A CUSTOMER PERSPECTIVE)

PERIPHERAL /AUXILIARY

SERVICES

FACILITATING

SERVICES

(AND GOODS)

SUPPORTINGSERVICES

(AND GOODS)

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FIVE PRODUCT LEVELS1 CORE

BENEFITTHE FUNDAMENTAL BENEFIT OR SERVICE-THECUSTOMER IS BUYING

(HOTEL: REST/SLEEP)

2 BASICPRODUCT

BASIC, FUNCTIONAL ATTRIBUTES

(ROOM; BED, BATH)

3 EXPECTED

PRODUCT

SET OF ATTRIBUTES/CONDITIONS THE BUYER

NORMALLY EXPECTS

(CLEAN ROOM, LARGE TOWEL, QUIETERLOCATION)

4 AUGMENTED

PRODUCT

THAT MEETS THE CUSTOMERS DESIRES

BEYOND EXPECTATIONS(PROMPT ROOM SERVICE, MUSIC, CHECK IN/OUT,AROMA)

5 POTENTIALPRODUCT

POSSIBLE EVOLUTION TO DISTINGUISH MARKETOFFER

(ALL-SUITE HOTEL)

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FordEndeavor

MARUTI 800 Camry

CORE BENEFIT PERSONAL

TRANSPORT

PERSONAL

TRANSPORT

PERSONAL

TRANSPORT

BASIC PRODUCT BOX ON WHEELS BOX ONWHEELES BOX ON SHEELS

EXPECTEDPRODUCT

LOAD BEARING FUEL EFFICIENT RELIABILITY

AUGMENTEDPRODUCT

POTENTIALPRODUCT

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CLASSIFICATION: TANGIBILITY

PURE TANGIBLE

MAJOR TANGIBLES WITH

MINOR INTANGIBLES

MINOR TANGIBLES WITH

MAJOR INTANGIBLES PURE INTANGIBLES

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Intangibility-Tangibility Spectrum

TangibleDominant

IntangibleDominant

SaltSoft Drinks

DetergentsAutomobiles

Cosmetics

AdvertisingAgencies

AirlinesInvestment

Management

ConsultingTeaching

Fast-foodOutlets

Fast-foodOutlets

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TANGIBLEDOMINANT

TANGIBLEEVIDENCES

COSME-TICS

INTANGIBLEDOMINANT

INTANGIBLEIMAGE

F.F.OUTLET

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Lesson 2

Classification of Goods

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PRODUCTS

CONSUMABLES

NON-DURABLES DURABLES

SERVICES

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Classifying Consumer Products

ConvenienceProducts

ShoppingProducts

SpecialtyProducts

Effort expended

UnsoughtProducts

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Classifying Organizational Products

Capital

products

EquipmentsInstallationAccessories

Productionproducts

Raw materialsManufacturedcomponent sparts

Operatingproducts

SuppliesServicesSoftware

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Lesson 3

Product and ServiceDifferentiation

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Product Differentiation

FormFeaturesCustomization

Performance QualityConformance QualityDurabilityReliability

Repair abilityStyle and design

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Service Differentiation

Ordering EaseDeliveryInstallation

Customer TrainingCustomer ConsultingMaintenance & RepairReturnsFunctional QualityPerceived Quality

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Lesson 4

Product Hierarchy

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PRODUCT HIERARCHY

ITEM

BRAND

PRODUCT TYPEPRODUCT LINE

PRODUCT CLASS

PRODUCT FAMILY

NEED FAMILY

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There might be more thanone Need Category beingcatered by one single item.

.that is why the myopia

continues

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Lesson 5

Product v/s Brand

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BRANDING

BRAND

BRAND NAME

BRAND MARKTRADE MARK

COPYRIGHT

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BRAND NAME and BRAND MARK

Some Examples:

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Generic Names

Used to describe a product class These were all originally brand names.

Nylon

Kerosene

Escalator

Formica

Cellophane

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BRAND NAME SPECTRUM

KODAK SCHWEPPES

VISA MILK

FOOD 100%HAJMOLA

SWEETN

LOW

SPEED POST

COMPLETELYFREESTANDING

ASSOCIATIVE COMPLETELYDESCRIPTIVE

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BRAND: 6 LEVELS OF MEANING

AttributesBenefits

Personality: If a brand is a person

object, animalUser: Kind of consumer

Culture

Value (Producers value)

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Good Brand Names:

Easy to remember and pronounce Should Reflect some aspects of the product and

reinforce product concept Invoke positive association and suggest a positive

image Distinctive Communicate product benefits Say something about the user Avoid linguistic traps Can be legally protected

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BRANDING DECISIONS

1. Should the product be branded at all.

2. Who should sponsor the brand.

3. What Quality should be built into the brand.

4. Should each product be individuallybranded or family branded.

5. Should Two or more brand be developed inthe same category.

6. Should the established brand/product begiven a new meaning: Repositioning.

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Lesson 6

Line v/s Brand Extension

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Line Extension and BrandExtension

When a company launches a new product ..

PRODUCT CATEGORY

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PRODUCT CATEGORY

Existing New

Existing

New

Line Extension

Multi-brands

Brand Extension

New Brands

BRAND

NAME

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Lesson 7

Packaging and Labeling

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PACKAGING

1. PACKAGING MUST PROTECT WHAT IT SELLS ANDSELL WHAT IT PROTECTS.

2. PACKAGING IS THE ART, SCIENCE AND

TECHNOLOGY OF PREPARING GOODS FORTRANSPORT AND SALES.

3. PACKAGING MAY BE DEFINED AS THE MEANS OF

ENSURING SAFE DELIVERY OF A PRODUCT TOTHE ULTIMATE CONSUMER IN SOUND CONDITIONAT THE MINIMUM OVERALL COST.

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Package: Extension of Product

Attention

Identifiable image

Protection

Promotion

Ecological function

Information & inserts

Encourage multiple unitpurchases

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LABELLING

ADVERTISING MESSAGE

CONSUMER INFORMATION

LEGAL REQUIREMENTS

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Lesson 8

Understanding the market offer:As a bundle of goods and

Services

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Review

Define product

Learn to classify products

Understand differences betweenproduct lines& product mixes

Review brand-related terminology

Developing New service Products