product levels
TRANSCRIPT
Unit – IProduct Levels, Hierarchy
Arun MishraAsst. Professor
VNS Business [email protected]
9893686820
Five Product Levels
core benefit of the productgeneric productexpected productaugmented productpotential product
source: Kotler, marketing management
Five product levels described
Product Levels Description
Core benefits the fundamental need or want that consumers satisfy by consuming the product or service.
Basic producta version of the product containing only those attributes or characteristics absolutely necessary for it to function.
Expected productthe set of attributes or characteristics that buyers normally expect and agree to when they purchase a product.
Augmented productinclusion of additional features, benefits, attributes or related services that serve to differentiate the product from its competitors.
Potential product all the augmentations and transformations a product might undergo in the future.
12-4
Product Classification Schemes
Durability
Use
Tangibility
12-5
Durability and Tangibility
Nondurablegoods
ServicesDurablegoods
Homogeneous Shopping Products
Heterogeneous Shopping Products
Shopping Products
Homogeneous Shopping Products
Heterogeneous Shopping Products
Shopping Products
Specialty Products
Convenience Products Impulse Products
Emergency Products
Staples
New Unsought Products
Regular Unsought Products
Unsought Products
Convenience Products Impulse Products
Emergency Products
Specialty Products
Staples
Consumer Goods Classification
Industrial Goods Classification
MRO SuppliesMRO Supplies
Supplies for Maintenance, Repair,
and Operating
Component Parts &
Materials
Component Parts &
Materialsprocessed expense
items that become part of a finished product
Raw Materials
Raw Materials
unprocessed expense items that become a physical part of a physical good
AccessoriesAccessories
short-lived capital items—tools & production equipment
InstallationsInstallations
important capital items
Professional Services
specialized services to support a firm’s
operations--consulting services
BusinessProductClasses
The Product Hierarchy
• Need Family: The core need that underlies the existence of a product family.
• Product family: All the product classes that can satisfy a core need with a reasonable effectiveness.
• Product class: A group of product within a product family recognised as having a certain functional coherence.
• Product line: A group of product within a product class that are closely related as they perform similar function, sold to same customer group, market through same channels, fall within given price range.
• Product type: A group of items within a product line with one or several forms of the product.
• Item: (Product Variant) – a distinct unit within a brand or product line, distinguished by size, price etc.
Service Mapping/Blueprinting
• A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view.
ServiceMapping
ProcessPoints of ContactEvidence
Blueprinting• Looks at the basic systems of your
organization ---- “a process” • Answers the questions: Who does what,
to whom, how often, and under what conditions?
Service Blueprint Components
CUSTOMER ACTIONS
line of interaction
“ONSTAGE” CONTACT EMPLOYEE ACTIONSline of visibility
“BACKSTAGE” CONTACT EMPLOYEE ACTIONSline of internal interaction
SUPPORT PROCESSES
Symbols Used In Blueprinting
• Rectangles --- process symbol• Flow of lines --- how often• Boxes with fans --- a range of potential
actions which can occur• Circles with fans --- a range of potential
events that may occur• Line of Visibility --- onstage from
backstage
Building a Service Blueprint
Step 1
Identify the process to be blue-printed.
Step 2
Identify the customer or customer segment.
Step 3
Map the process from the customer’s point of view.
Step 4
Map contact employee actions, onstage and back-stage.
Step 5
Link customerand contact person activities to needed support functions.
Step 6
Add evidence of service at each customer action step.
A Model Service Blueprint of a Bank
Cash Receipts
Cash Payments 1
DDs & other Services
Cheques/ withdrawal from
receiving counter
Cash Manager Bills Verification Officers
Bills Passing Officers
Accountant / Supervising Officers
Accounts Department
Chief Manager/ Branch Manager
Support Staff
Deposits / Loans
Customer Contact Points
Support Services
Line of Visibility
Backstage Support Services
Application of Service Blueprints
• New Service Development• concept development• market testing
• Supporting a “Zero Defects” Culture• managing reliability• identifying empowerment issues
• Service Recovery Strategies• identifying service problems• conducting root cause analysis• modifying processes
