Understanding Market Offer:

Products and Services

Scope
1.
2. 3.

4. 5. 6.

What is product Classification of product Distinction between product family, class, type etc. Review brand-related terminology Branding strategies Packaging and labeling.

Lesson 1

Core & Augmented Product

Core & Augmented Product

Augmented product

AUXILIARY CHARACTERISTICS

Core product Primary Characteristics

PRODUCT: THREE LEVELS

i)

ii)

iii)

The core physical product, service or benefit. The tangible product: quality level, features, styling, brand name & packaging. Augmented product. Delivery & credit, warranty, SAS, installation

Product Strategy & Product Concept

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

Colored paperclips that dont rust

SERVICE AUGMENTATION
(BASED ON A CUSTOMER PERSPECTIVE) PERIPHERAL / AUXILIARY SERVICES

FACILITATING SERVICES (AND GOODS)

SUPPORTING SERVICES (AND GOODS)

FIVE PRODUCT LEVELS

1 CORE BENEFIT 2 BASIC PRODUCT THE FUNDAMENTAL BENEFIT OR SERVICE-THE CUSTOMER IS BUYING (HOTEL: REST/SLEEP) BASIC, FUNCTIONAL ATTRIBUTES (ROOM; BED, BATH)

3 EXPECTED PRODUCT

SET OF ATTRIBUTES/CONDITIONS THE BUYER NORMALLY EXPECTS (CLEAN ROOM, LARGE TOWEL, QUIETER LOCATION)
THAT MEETS THE CUSTOMERS DESIRES BEYOND EXPECTATIONS (PROMPT ROOM SERVICE, MUSIC, CHECK IN/OUT, AROMA)

4 AUGMENTED PRODUCT

5 POTENTIAL PRODUCT

POSSIBLE EVOLUTION TO DISTINGUISH MARKET OFFER (ALL-SUITE HOTEL)

Ford Endeavor
CORE BENEFIT PERSONAL TRANSPORT BOX ON WHEELS

MARUTI 800
PERSONAL TRANSPORT BOX ON WHEELES FUEL EFFICIENT

Camry
PERSONAL TRANSPORT BOX ON SHEELS

BASIC PRODUCT

EXPECTED PRODUCT AUGMENTED PRODUCT POTENTIAL PRODUCT

LOAD BEARING

RELIABILITY

CLASSIFICATION: TANGIBILITY
PURE TANGIBLE

MAJOR TANGIBLES WITH

MINOR INTANGIBLES

MINOR TANGIBLES WITH

MAJOR INTANGIBLES

PURE INTANGIBLES

Intangibility-Tangibility Spectrum
Salt

Soft Drinks
Detergents Automobiles Cosmetics Fast-food Outlets

Intangible Dominant Tangible Dominant

Fast-food Outlets Advertising Agencies Airlines Investment Management Consulting Teaching

TANGIBLE DOMINANT COSMETICS

TANGIBLE EVIDENCES

F.F. OUTLET

INTANGIBLE DOMINANT

INTANGIBLE IMAGE

Lesson 2

Classification of Goods

PRODUCTS
CONSUMABLES SERVICES

NON-DURABLES

DURABLES

Classifying Consumer Products

Convenience Products Unsought Products

Shopping Products

Specialty Products

Effort expended

Classifying Organizational Products

Capital products Production products Operating products

Equipments Installation Accessories

Raw materials Manufactured component s parts

Supplies Services Software

Lesson 3

Product and Service Differentiation

Product Differentiation
Form Features Customization Performance Quality Conformance Quality Durability Reliability Repair ability Style and design

Service Differentiation
Ordering Ease Delivery Installation Customer Training Customer Consulting Maintenance & Repair Returns Functional Quality Perceived Quality

Lesson 4

Product Hierarchy

PRODUCT HIERARCHY
ITEM

BRAND
PRODUCT

TYPE PRODUCT LINE PRODUCT CLASS PRODUCT FAMILY NEED FAMILY

There might be more than one Need Category being catered by one single item. .that is why the myopia continues

Lesson 5

Product v/s Brand

BRANDING
BRAND

BRAND

NAME BRAND MARK TRADE MARK COPYRIGHT

BRAND NAME and BRAND MARK

Some Examples:

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

Nylon Kerosene

Escalator
Formica

Cellophane

BRAND NAME SPECTRUM

VISA MILK KODAK SCHWEPPES FOOD 100% HAJMOLA SWEET N LOW SPEED POST

COMPLETELY FREE STANDING

ASSOCIATIVE

COMPLETELY DESCRIPTIVE

BRAND: 6 LEVELS OF MEANING

Attributes Benefits Personality:

If a brand is a person object, animal User: Kind of consumer Culture Value (Producers value)

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

BRANDING DECISIONS
1. 2. 3. 4. 5. 6.

Should the product be branded at all. Who should sponsor the brand. What Quality should be built into the brand. Should each product be individually branded or family branded. Should Two or more brand be developed in the same category. Should the established brand/product be given a new meaning: Repositioning.

Lesson 6

Line v/s Brand Extension

Line Extension and Brand Extension

When a company launches a new product ..

PRODUCT CATEGORY

Existing

New

Existing

Line Extension Brand Extension

BRAND NAME

New

Multi-brands

New Brands

Lesson 7
Packaging and Labeling

PACKAGING
1.

PACKAGING MUST PROTECT WHAT IT SELLS AND SELL WHAT IT PROTECTS. PACKAGING IS THE ART, SCIENCE AND TECHNOLOGY OF PREPARING GOODS FOR TRANSPORT AND SALES. PACKAGING MAY BE DEFINED AS THE MEANS OF ENSURING SAFE DELIVERY OF A PRODUCT TO THE ULTIMATE CONSUMER IN SOUND CONDITION AT THE MINIMUM OVERALL COST.

2.

3.

Package: Extension of Product

Attention Identifiable image Protection Promotion Ecological function Information & inserts Encourage multiple unit purchases

LABELLING
ADVERTISING

MESSAGE CONSUMER INFORMATION LEGAL REQUIREMENTS

Lesson 8

Understanding the market offer: As a bundle of goods and Services

Review
Define

product Learn to classify products Understand differences between product lines & product mixes Review brand-related terminology Developing New service Products