product category & hierarchy v2.3

8/2/2019 Product Category & Hierarchy v2.3

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Group F:

6 - Prince Chandpillai 18 - Mandar Jadhav

30 - Rupen Momaya

42 - Swapnil Sawale

54 - Shailesh Waingankar


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A Product is any offering by a company to a marketthat serves to satisfy customer needs and wants.

A Product is anything offered for attention, acquisition,

use or consumption that might satisfy a want.

A Product is a bundle of satisfaction that customer buys.It represents solution to customers Problems.

The term Product covers both goods & services.

As Peter Drucker puts it, So long as a product is notbrought and Consumed by customer, it still remains in araw material or at intermediate level.


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The levels are1. Core benefit2. Actual / Basic product

3. Expected product4. Augmented product5. Future / Potential product

Based on Customer Value, marketer needs to address 5 productlevels.

Each level adds more cost but results in more Value addition

for customer and More customer satisfaction.


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1. Core benefit Communication

2. Actual / Basic product A mobile handset which serve the basicneed should have attributes like keypad for dialing a phone number, aColor display to view the dial number, Microphone and speaker to sendand receive the voice, phone book for storing the contacts. Also a

Brand Name, Good packaging and reasonable price.

3. Expected product Customer expects all basic feature along withfeatures like good stylish looks, Easy to Operate , Light weight , Goodbattery life, After Sale service.

4. Augmented product Extra features such as FM radio, Videocamera, Voice Dialing, Touch screen, Dual sim, Accessibility of Internet, E-mail and social networking sites using 3G technology.

5. Future / Potential product Global Positioning system (GPS),Projector in mobile , Live TV on mobile etc.


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ConsumerProducts

IndustrialProducts

Classify on thebasis of consumers

shopping habits1. Convenience Goods

2. Shopping Goods

3. Specialty Goods

4. Unsought Goods

classified on theirrelative cost and

how they enter intoproduction systems

1. Raw Materials

2. Manufacturedmaterials & parts

3. Capital Items


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Consumed only forshort span of time.

Purchasedfrequently so needto advertise heavilyto build thepreference

Intangible,inseparable,variable and

perishable products

requires morequality control,supplier credibilityand adaptability

Business Services

Lasts for a very longduration of time

more personalselling

Require Good After

sales service.

Non DurableGoods

Durable Goods Services


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Product Need the core need that underlines the existence of a

product family. Eg. Personal Care Product Family - All the product classes that can satisfy a coreneed with reasonable effectiveness.

Product Class A group of products within the product familyrecognized as having a certain functional coherence. Also known as

product category. Eg. Cosmetics, skin creams, shampoos,conditioners, soaps, etc..

Product Line A group of products within a product class that isclosely related because they perform a similar function, are sold to thesame customer groups Eg. Shampoos

Product Type - A group of items within a product line that share oneof several possible forms of the product Eg. Dandruff control

shampoos.

Product Brand - Clinic All Clear

Item - a distinct unit within a brand or product line distinguishableby size, price, appearance, or some other attribute. A sachet of Clinic

All Clear.


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EXAMPLEOF HIERARCHYIN CLOTHING


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Width how many different product lines?

Length the number of items in the productmix

Depth The no. of variants offered in aproduct line

Consistency how closely the product lines arerelated in usage

The assortment of products that a company offers to a market.


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Cameras Printers Projectors Solutions

Digital

Camcorder

SmallFormat

LargeFormat

Digital

Slide

DocumentCapture

DocumentManagement

Film ProductionSystem

PersonalizedImage Printing


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Sales and Profit :-Marketers have the need to know the current and potential salesand profits of each item in a line in order to determine which itemsto build, sustain, harvest, or divest. They need to analyze the effect of increasing the length. Canmore profit be made by increasing the length?

Companies seeking high market share and market growth will

generally carry longer product lines Companies that emphasize high profitability will carry shorterlines consisting of carefully chosen items.

Market Profile


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Down-Market Stretch Introducing lower range of products.

Line Stretching occurs when company lengthensits product line beyond its current range.

Up-Market Stretch Entering the higher end of market

Two way Stret ch By filling the whole line.


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A group of products having acertain functional coherence


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Cameras

Digital

IXUS Designed for the fashion-forward,

Specially designed to be an affordableyet powerful compact camera.

Allows you to upgrade your equipmentto match your photographic progress.


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Long Term strategy

Pricing

Brand & Marketing

Packaging


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product category & hierarchy v2.3

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